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Helium One Global (AIM: HE1), a prominent helium explorer in Tanzania, has recently made a significant announcement regarding its fundraising endeavors. On June 10, 2024, the company disclosed its plans for a proposed placing (the "Placing") and a direct subscription (the "Subscription"), collectively termed as the "Fundraise." The response to this announcement has been overwhelmingly positive, with the company successfully raising gross proceeds of £8.0 million (approximately US$10.2 million).
The Fundraise involved the issuance of an aggregate of 1,600,000,000 new ordinary shares of no par value in the capital of the Company ("Ordinary Shares") at a price of 0.50 pence per Ordinary Share (the "Issue Price"). It is noteworthy that the Fundraise was oversubscribed, indicating strong investor interest in the company's prospects.
The Placing, a key component of the Fundraise, was executed through an accelerated bookbuild process led by Liberum Capital Limited and Zeus Capital Limited acting as joint bookrunners, with Axis Capital Markets serving as the placing agent. The Placing involved the issuance of 1,572,970,000 new Ordinary Shares ("Placing Shares") to raise approximately £7.9 million (approximately US$10.0 million). Additionally, the Subscription comprised 27,030,000 new Ordinary Shares ("Subscription Shares") to raise approximately £0.1 million (approximately US$0.2 million). Together, these constitute the "Fundraise Shares."
The Issue Price, set at 0.50 pence per Ordinary Share, represents a significant discount of approximately 56.5 per cent. to the closing price of 1.15 pence per Ordinary Share on June 7, 2024, the last business day prior to the announcement of the Fundraise. This discount further underscores the attractiveness of the offering to investors.
Lorna Blaisse, Chief Executive Officer of Helium One Global, expressed satisfaction with the response to the placing, emphasizing the pivotal role of the raised funds in advancing the company's development agenda. Blaisse stated that the proceeds would facilitate critical phases of the company's development, including the deepening of Itumbula West-1 and the execution of the EWT (Extended Well Test). These initiatives, coupled with the successful award of the Mining License, are expected to pave the way for the commencement of the development phase for the first helium project in Tanzania.
Following the completion of the Fundraise, application has been made for the Fundraise Shares to be admitted to trading on AIM ("Admission"). Trading in the new shares is anticipated to commence on AIM at or around 8.00 a.m. on June 14, 2024. Importantly, the Fundraise Shares will rank pari passu with the existing Ordinary Shares in issue, ensuring equitable treatment of shareholders.
Post-Admission, Helium One Global's issued and fully paid share capital will comprise 5,315,710,763 Ordinary Shares, all carrying one voting right per share. Notably, the Company does not hold any Ordinary Shares in treasury. The figure of 5,315,710,763 Ordinary Shares may be used by shareholders as the denominator for calculating their interest in the Company, in accordance with the Disclosure Guidance and Transparency Rules.
The Fundraise Shares will represent approximately 30 percent. of the Company's enlarged issued share capital on Admission, assuming no other issuance of Ordinary Shares prior to Admission. This significant injection of capital positions Helium One Global favorably to pursue its strategic objectives and capitalize on the burgeoning opportunities in the helium exploration and production sector.
