- Australis Oil and Gas (ATS) has raised $7.5 million through the first tranche of a placement announced at the start of the month
- 150 million new shares were issued to sophisticated and institutional investors at 5 cents under the first tranche
- Roughly 13.5 million shares will be issued under the second tranche to raise a further $675,000, however, ATS must first receive approval from shareholders
- Additionally, the energy stock has opened up its share purchase plan to raise another $2 million
- Overall, the funds are being used to resume the leasing of mineral rights in the U.S. and for working capital
- Australis closed 3.23 per cent in the green with shares trading at 4.8 cents
Australis Oil and Gas (ATS) has raised $7.5 million through the first tranche of a placement announced at the start of the month.
On March 1, the energy stock announced its plan to raise up to $10 million through a two-tranche placement to resume the leasing of mineral rights in the U.S and for working capital.
Specifically, Australis will recommence leasing of the Tuscaloosa Marine Shale (TMS) Core Area mineral rights, in which the company operates 38 producing wells across 107,500 net acres.
As detailed in that announcement, 150 million new ordinary fully paid shares at 5 cents per share have been issued to sophisticated and institutional investors.
Tranche two of the placement will issue the remaining 13.5 million shares to the directors of Australis to raise to about $675,000. However, the second tranche is subject to shareholder approval, which will be sought at the annual general meeting in May.
Also as part of ATS’ capital raise was a share purchase plan (SPP) which is now open.
Under the SPP, eligible shareholders may purchase up to $30,000 worth of shares at five cents. ATS hopes to raise a further $2 million.
The SPP will close on March 26, however, directors have the right to either close the offer early or extend the closing date if they wish.
Australis closed 3.23 per cent in the green with shares trading at 4.8 cents at market close.