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Highlights
- Provaris Energy raised A$1.5 million to fund hydrogen and CO₂ initiatives in Europe.
- The placement garnered strong institutional and investor support.
- Directors participated with a commitment of $125,000, subject to shareholder approval.
Provaris Energy Ltd (ASX:PV1) has successfully raised A$1.5 million through a recent share placement aimed at advancing its hydrogen and CO₂ initiatives in Europe. This capital will enable the company to further develop key business activities, especially in hydrogen storage and transportation, as well as support preparations for resuming its prototype tank program. The placement, priced at A$0.02 per share, attracted substantial interest from institutional, sophisticated, and professional investors, with a total of 75 million new fully paid ordinary shares issued.
The placement price reflected a 5% discount to the most recent trade and a 10% discount to the 30-day volume-weighted average price as of November 1, 2024. The funding comes as Provaris Energy builds momentum in developing commercial pathways for its hydrogen storage and transport solutions across Europe.
Notably, the placement received substantial backing from both existing and new investors, including a newly introduced Australian institution and an international corporate investor. Provaris Energy's board of directors also showed confidence in the company’s initiatives, with members committing a total of $125,000 to the placement, subject to approval at an upcoming Extraordinary General Meeting (EGM). The company’s CEO, Martin Carolan, expressed appreciation for the strong investor interest and reiterated the importance of Provaris Energy’s unique solutions in addressing the growing demand for cost-effective hydrogen storage and transport solutions in Europe.
Carolan highlighted Provaris Energy’s strategic focus on advancing compressed hydrogen as a viable method for storing and transporting hydrogen at bulk scale. He noted that the company is addressing industry challenges, including cost, complexity, and efficiency, positioning it as a key enabler for regional hydrogen production and distribution. Provaris Energy also aims to leverage its proprietary technology in the CO₂ shipping sector, where its high-capacity CO₂ tanks and ships could lower the costs associated with CO₂ storage and marine transport.
The placement will settle in a single tranche, utilizing Provaris Energy's existing ASX Listing Rules 7.1 and 7.1A placement capacity. Settlement is scheduled for November 12, 2024, with new shares ranked equally alongside existing fully paid ordinary shares.
This funding marks a significant step for Provaris Energy as it continues to build its footprint in Europe’s hydrogen and CO₂ sectors, providing innovative solutions to meet the growing demand for sustainable energy storage and transport.
