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ADX Energy (ASX:ADX) to raise $2.3M for key projects

Energy
ASX:ADX      MCAP $45.92M
15 December 2020 15:30 (AEST)
ADX Energy (ASX:ADX) - Executive Chair, Ian Tchacos

Source: The Market Herald

ADX Energy (ADX) is aiming to raise $2.3 million to boost funding for its key projects.

The company will raise the money through a placement and share purchase plan (SPP).

Under the placement, the company is offering shares at 0.6 cents each to sophisticated investors to raise $1.3 million.

Additionally, ADX will issue one placement option for every two placement shares. These can be exercised at 0.8 cents and expire in June next year.

Meanwhile, the remaining $1 million should come from the SPP, which will see shares offered at the same price as the placement.

Funds raised will be used on ADX’s key production projects and growth opportunities in Austria.

These include paying a bank guarantee to the Austrian Mining Authority for the recently announced Molasse basin exploration and appraisal licences in Upper Austria.

“The Board of ADX is very pleased to secure this Placement on favourable terms which allows the company to continue to build on its unique asset position in Austria by pursuing further strategic growth opportunities generated by our
experienced and well-connected team on the ground,” Executive Chairman Ian Tchacos said.

On the market this afternoon, ADX is down 14.3 per cent and is trading at 0.6 cents per share at 12:55 pm AEDT.

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