- Bass Oil (BAS) receives binding commitments to undertake a $1 million placement
- A total of 500 million new ordinary shares will be issued to sophisticated and professional investors at 0.2 cents
- Bass will also be undertaking a one for five fully underwritten pro-rata, non-renounceable rights issue to raise up to $1.5 million
- Money from both the placement and rights issue to fund the Cooper Basin Portfolio acquisition and drill the Tangai 5 well in Indonesia
- Bass ends the day in the grey with shares trading at 0.2 cents
Bass Oil (BAS) has received binding commitments to undertake a $1 million placement.
The company entered a trading halt on August 24 but did not disclose how much it intended to raise or what it would use the funds for.
A total of 500 million new ordinary shares will be issued to sophisticated and professional investors at 0.2 cents.
This price represents a nine per cent discount to the 30-day volume-weighted average price.
Additionally, participants will receive one free-attaching option for every two shares subscribed for, exercisable at 0.4 cents with expiry on or before September 30, 2024.
Bass has also announced it will be undertaking a one for five fully underwritten pro-rata, non-renounceable rights issue to raise up to $1.5 million.
Shares will be priced the same as the placement and participants will also receive one free-attaching option for every two shares subscribed for.
The rights issue is fully underwritten to the amount of $1,537,560 by Peak Asset Management.
Bass will use the money from both the placement and rights issue to fund the Cooper Basin Portfolio acquisition and drill the Tangai 5 well in Indonesia.
Managing Director Tino Guglielmo commented on the placement and what the funds will be used for.
“As recently announced to the market and in parallel to Bass’ Indonesian business, Bass has secured a foothold in the Cooper Basin by acquiring a suite of assets from Cooper Energy which provides instant production and substantial exploration upside,” Mr Guglielmo commented.
“It represents an important first step in our strategy to acquire high-quality assets in the region and allows us to work alongside Beach Energy, as operator, a leading player in the region.”
“Business development activities also continue to make headway, and we are currently reviewing a number of opportunities in the market, with technical and commercial evaluations progressing on shortlisted opportunities.”
Bass has ended the day in the grey with shares trading at 0.2 cents in a $6.68 million market cap.