BPH Energy (ASX:BPH) raises $9M in oversubscribed placement

• BPH Energy (BPH) has raised $9 million in a significantly oversubscribed share placement
• More than 69.2 million shares were issued to sophisticated and professional investors at 13 cents – representing a 20.2 per cent discount to the 10-day volume-weighted average price
• BPH has stated it will use around $5.75 million to invest in Advent Energy with the latter to use the funds to progress well planning and engineering at the Baleen drill target
• Additionally, BPH will use around $500,000 to increase its shareholding in Cortical Dynamics from 16 per cent to 18 per cent
• BPH Energy is up a healthy 23.5 per cent on the market and shares are trading at 21 cents

BPH Energy (BPH) has raised $9 million in a significantly oversubscribed share placement.

The company entered a trading halt on Monday but did not disclose how much it would be raising or what the funds would be used for.

All up, 69,230,769 fully-paid ordinary shares were issued to sophisticated and professional investors at 13 cents.

This price represents a 20.2 per cent discount to the 10-day volume-weighted average price.

Of the $9 million, $7 million was managed by Everblu Capital who will receive a six per cent fee of the funds raised as well as six million options, exercisable at 26 cents and valid until February 8, 2023.

A further $1.5 million was placed by 62 Capital who will receive a six per cent fee of the funds raised and more than 1.28 million options, exercisable at 26 cents with expiry on February 8, 2023.

The remaining $500,000 was placed by Grandbridge Securities who will also receive a six per cent fee.

“The company is pleased to receive funding from a range of investors including existing and new shareholders, and others who participated in the placement through Everblu Capital and 62 Capital,” Managing Director David Breeze said.

BPH has stated it will use around $5.75 million to invest in Advent Energy with the latter to use the funds to progress well planning, engineering and environmental approvals at the Baleen drill target.

Additionally, BPH will use around $500,000 to increase its shareholding in Cortical Dynamics from 16 per cent to 18 per cent.

Shares are expected to be issued on February 8.

BPH Energy is up a healthy 23.5 per cent on the market and shares are trading at 21 cents at 11:32 am AEDT.