- BPH Energy (BPH) receives binding commitments to raise roughly $1.5 million via a share placement
- The funds will be raised through the issue of more than 115.38 million new fully-paid ordinary shares to a range of sophisticated investors priced at 1.3 cents
- BPH will also be undertaking a non-renounceable entitlement offer to raise around $400,000 via the issue of more than 30 million shares at the same price as the placement
- The company will use the money to invest in its Clean Hydrogen Technology, and the exploration and development of oil and gas investments
- BPH ends the day 6.25 per cent in the green to close at 1.7 cents
BPH Energy (BPH) has received binding commitments to raise roughly $1.5 million via a share placement.
The funds will be raised through the issue of 115,384,615 new fully-paid ordinary shares to sophisticated investors priced at 1.3 cents.
This price represents an 18.8 per cent discount to BPH’s closing price on August 12 of 1.6 cents and a 23.7 per cent discount to the five-day volume-weighted average price.
BPH will also be undertaking a non-renounceable entitlement offer to raise around $400,000 via the issue of 30,769,230 shares at the same price as the placement.
Participants under both the placement and entitlement offer will receive one free-attaching option for every share subscribed for, exercisable at 3 cents with expiry on September 30, 2024.
Subject to shareholder approval, BPH intends to undertake a loyalty option issue of one option for every eight shares held on the same terms as the attaching options.
Of the $1.9 million, $900,000 will go towards investment in BPH’s Clean Hydrogen Technology, $680,000 will go towards exploration and development of BPH’s oil and gas investments, and $320,000 will go towards working capital.
“The funding allows BPH to accelerate the exploration programs to unlock the potential on both our hydrogen and gas projects especially following the recent gas crisis and focus on hydrogen,” Executive Director David Breeze said.
“We welcome the new shareholders and look forward to eligible shareholders supporting BPH as we continue our activities.”
BPH has ended the day 6.25 per cent in the green to close at 1.7 cents.