- Buru Energy (BRU) successfully taps retail and private investors for $9.2 million to fund appraisal and commercialisation activity at its Rafael gas discovery in WA’s Canning Basin
- Buru will issue around 57.6 million new shares at 16 cents to raise the funds — a discount of almost 24 per cent to its last closing price before the raise
- The new shares — other than those issued under a shortfall placement — are expected to be issued on June 7 and commence trading on the ASX on June 8
- The work to be funded by the cash boost will include a well flow testing program, 3D seismic acquisition, and pre-commercialisation activity
- Shares in Buru are trading grey at 16.5 cents at 10:17 am AEST
Buru Energy (BRU) has successfully tapped retail and private investors for $9.2 million to fund appraisal and commercialisation activity at its Rafael gas discovery in WA’s Canning Basin
Under the capital raise, Buru is set to issue around 57.6 million new shares at 16 cents each — a discount of almost 24 per cent to its last closing price before the launch of the raise.
The company received commitments for around $6.06 million from eligible investors under a one-for-six entitlement offer, and investors subscribed for another $2.8 million under a shortfall offer.
Buru also issued $360,000 worth of shares to institutional investors under a shortfall placement.
Executive Chairman Eric Streitberg said the successful capital raise came amid “very challenging” market conditions for the business.
“With the funds received, we are now fully funded for the upcoming well flow testing program, 3D seismic acquisition, and pre-commercialisation activity at our very exciting Rafael gas and condensate discovery,” Mr Streitberg said.
“We are also pleased with the response we have received from new institutional investors as part of the subsequent rights issue shortfall placement, reflecting a broader recognition that gas will be an integral part of the energy mix for many years to come.”
The new shares — other than those issued under the placement — are expected to be issued on June 7 and commence trading on the ASX on June 8.
The placement shares are expected to be issued on June 8.
Shares in Buru were trading grey at 16.5 cents at 10:17 am AEST.