Tlou Energy Limited (ASX: TOU) on 16 April 2019 announced that it has successfully completed an equity placement to sophisticated Investors totaling BWP21.8 million (A$2.9 million). The company concentrates on the delivery of Gas-to-Power solutions in Botswana and Southern African region.
The placement has been completed, where each share was issued at BWP0.75 which is equivalent to A$0.10, at a premium of around 4% to the closing ASX share price on 15 April 2019, and a 2% premium to the 15-day volume weighted average price for the shares of the company traded on ASX at A$0.979. The placement of the shares will be as per the listing rule 7.1 and 7.1A placement capacity that was refreshed by the shareholders in the 2018 Annual General Meeting.
Under the placement, approximately 29,066,650 new ordinary shares were issued. Out of these, 28,000,000 of the placement shares will be issued to an existing shareholder. The shareholder includes, The Botswana Public Officers Pension Fund, FNB Nominees (Pty) Ltd, Gaborone, Botswana (BPOPF). After the placement of the shares, BPOPF will be holding 47,230,769 shares of the enlarged share capital of the Company. It means that BPOPF will be holding 10.49% holding of Tlou Energy Limited.
The revenue generated through the placement along with the existing cash of the company will be supporting the working capital for the ongoing activities such as exploration and downstream development work, testing of the continued gas flow (at the recently completed production well) followed by the efforts to secure a power purchase agreement.
After the admission of the Placement shares, TOU will be having 450,180,185 issued ordinary shares. The announcement also highlighted that the company has no shares in treasury and these 450,180,185 ordinary shares will be used by the shareholders as the denominator, which will help them in determining if they are required to inform their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance as well as Transparency Rules.
On 18 March 2019, the company announced the completion of the two development pods along with six wells at the Lesedi CBM Project in Botswana.
For the half-yearly period ended 31 December 2018, the company incurred a loss of $1,520,139. The balance sheet of the company reported an increase in the net asset base during the period. The growth in the net asset base was driven by a significant increase in the total assets of the company. The total shareholders’ equity was worth $65,029,293. By the end of the half year on 31 December 2018, the net cash and cash equivalent with the company was $5,520,614.
In the last six months, the shares of TOU generated a negative return of 12.73%. However, the stock gave a decent YTD return of 20%. By the end of the trading session, the shares of the company were at a price of A$0.098 (as on 16 April 2019), up by 2.083% as compared to its previous closing price. TOU has a market capitalization of A$40.43 million and approximately 421.11 million outstanding shares.
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