Invictus Energy (ASX: IVZ) raises AU$15M via placement

Highlights

• Invictus has raised AU$15.0 million through an institutional placement.
• Funds will be directed towards progressing activities at its Cabora Bassa Project in Zimbabwe.
• Under the placement, ~115,384,616 new shares will be issued at AU$0.13 per new share. 

In the latest announcement, Invictus Energy Limited (ASX:IVZ) revealed that it has successfully raised AU$15.0 million through an institutional placement. The company will be utilising the proceeds from the capital raise to advance activities at its 80% owned and operated Cabora Bassa Project in Zimbabwe.

The funds will be used for Mukuyu-2 well test as well as for the preparation for 3D seismic over the Mukuyu gas field. IVZ will also use a portion of the proceeds for long lead items and planning and preparation for a new high-impact exploration well which will be determined after completion of interpretation of CB23 infill seismic survey which was recently completed.

Details of the placement

As per the terms of the placement, IVZ will issue around 115,384,616 new shares at an issue price of AU$0.13 per new share, which marks a 16% discount to its last trading price before the placement (on 21 December 2023). Also, it represents a 21% discount to the five-day volume weighted average price prior to that date.

One (1) free listed IVZOA option  will be allotted to each applicant for every two shares subscribed for and issued under the placement, with up to 57,692,308 IVZOA options to be issued. The options have an exercise price of AU$0.20 apiece and expiry on 7 June 2026.

Initially, the placement targeted a capital raise of AU$10.0 million; however, later it was altered to aim AU$15.0 million due to heavy oversubscription.

The placement was facilitated by joint lead managers Canaccord Genuity Australia and PAC Partners. For the placement, Alpine Capital Pty Ltd served as the financial advisor to Invictus. The company will be paying a management fee of 2% and a selling fee of 4% to the joint lead managers for the placement.

Furthermore, the company plans to launch an entitlement offer for all shareholders in January 2024.

IVZ shares traded at AU$0.135 midday on 27 December 2023.