Join our daily newsletter At The Bell to receive exclusive market insights
- ADX Energy (ADX) launches placement to raise $2.85 million to fund activities at its projects in Austria
- The energy stock is issuing 284.7 million shares to investors at one cent each
- Every two shares subscribed come with one free-attaching unlisted option at 1.5 cents which will expire on June 30 2022
- Specifically, ADX is using the money for feasibility work at its green hydrogen project, the Geothermal Pilot Project, completion and tie in for production at the Anshof well and potentially on fees to extend its exploration licences in Upper Austria
- Company shares have been trading down 4.55 per cent to 1.1c at 3:05 pm AEDT.
ADX Energy (ADX) has finalised a placement to sophisticated, professional and institutional investors.
The energy stock is looking to raise about $2.85 million through the issue of 284.7 million shares at one cent each.
The placement also comes with one free-attaching unlisted option for every two placement shares subscribed for. The options have an exercise price of 1.5 cents and will expire on June 30 2022.
ADX Energy said it plans to use the money to support activities at its Austria-based projects.
Specifically, ADX will apply the funds to feasibility work for the Vienna Basin green hydrogen production and storage project and the Geothermal Pilot Project in collaboration with Siemens Energy and RED Drilling & Services.
Also on the list for funding is the completion and tie in for production of the Anshof exploration well, as well as license fees to extend its exploration licences in Upper Austria.
Company Chair Ian Tchacos commented on the placement.
“The Board of ADX is very pleased to complete this placement at a minimal discount,” he said. “The additional funding allows the company to pursue its exploration activities as well as the feasibility of its low carbon projects.”
The placement shares and options are expected to be issued on December 14.
Company shares were down 9.09 per cent and trading at one cent at 2:29 pm AEDT.
