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Energy World Corporation (ASX:EWC) successfully taps investors for $65M

Energy
ASX:EWC      MCAP $36.94M
22 April 2021 04:00 (AEST)
Energy World Corporation (ASX:EWC) - Chairman and CEO, Stewart Elliott

Source: Hong Kong Buzz

Energy World Corporation (EWC) has successfully raised $65 million from existing shareholders through an entitlement offer launched last month.

Under the offer, existing shareholders had the chance to subscribe for one new share at eight cents per share for every 2.21 shares already held.

This offer price represented a neat 17.5 per cent discount to EWC’s 30-day volume-weighted average price of 9.7 cents per share when the entitlement offer was launched.

Today, Energy World said eligible shareholders subscribed for around 304.6 million shares out of the 812.5 million on offer, or around 37.5 per cent of shares available under the entitlement offer.

The remaining 508 million shares were allocated to underwriters and sub-underwriters to the cap raise.

Importantly, EWC’s biggest shareholder, Energy World International (EWI) was a sub-underwriter to the raise — meaning it could subscribe for its pro-rata 38.8 per cent entitlement under the raise.

EWC said once EWI’s investment has been scaled back to allow for “new institutions to take up meaningful positions”, EWI will own around 35 per cent of the company.

EWC Chairman and CEO Stewart Elliot called the entitlement offer a “huge success”.

“Approximately 76 per cent of the entitlement offer was subscribed for by shareholders (including Energy World International Ltd, who subscribed for their pro-rata 38.8 per cent entitlement as a sub-underwrite),” Stewart said.

“Accordingly, we would like to thank our shareholders for this show of support as we enter a very exciting phase in our company growth,” he said.

In March, EWC flagged its plans to use $43 million of the raised total to pay a Standard Chartered Convertible Note which has now been assigned to Augusta Investments.

At the time, the company said it planned to use $18 million to develop its key projects in Australia and Southeast Asia, with the remaining $4 million to cover the costs of the entitlement offer.

Today, Stewart said the challenge for the company is now clear.

“Now that the key hurdles preventing us from completing our projects in Indonesia and the Philippines have been cleared, we need to bring them into production as soon as possible,” Stewart said.

He said the company will update shareholders as it progresses with this goal.

Shares in Energy World Corporation closed 5.56 per cent higher today at 9.5 cents each. The company has a $242 million market cap.

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