Genex Energy (ASX:GNX) - CEO, James Harding (centre)
CEO, James Harding (centre)
Source: North Queensland Register
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  • Genex Power (GNX) has raised approximately $56 million through an institutional placement and institutional entitlement offer (IEO)
  • The IEO is part of a $90.3 million equity raise
  • Genex, through the placement, is set to issue more than 280 million new shares to institutional and sophisticated investors, priced at 20 cents each
  • The issue price represents a 27 per cent discount to the five-day volume-weighted average price
  • Meanwhile, the company is slated to raise an additional $34.2 million through a retail entitlement offer
  • The capital raised will be funnelled into the construction of Genex’s flagship 250-megawatt Kidston Pumped Storage Hydro Project in North Queensland
  • GNX expects the placement and IEO to be completed on April 6
  • Genex Power shares are down 7.26 per cent, trading at 23 cents each

Renewable energy company Genex Power (GNX) has raised approximately $56 million through an institutional placement and institutional entitlement offer (IEO).

Based in Sydney, Genex is focused on developing a portfolio of renewable energy generation storage projects across Australia.

The company’s recent 11-for-20 fully underwritten pro-rata accelerated non-renounceable IEO and share placement are part of a $90.3 million total equity raise.

Genex, through the placement, is set to issue more than 280 million new shares to institutional and sophisticated investors, priced at 20 cents each.

The issue price represents a 27 per cent discount to the five-day volume-weighted average price and a 15 per cent discount to the theoretical ex-rights price.

Meanwhile, the company is slated to raise an additional $34.2 million through a retail entitlement offer.

Genex will open the offer to its eligible existing retail shareholders on March 30, to be conducted at the same price and ratio as the above IEO.

GNX says capital generated through the equity raise will be funnelled into constructing its flagship 250-megawatt Kidston Pumped Storage Hydro Project in North Queensland.

The company will also contribute anticipated proceeds from an Electric Power Development (J-POWER) subscription and existing cash to the project.

Genex Power CEO James Harding commented on the equity raise.

“Genex is delighted with the strong response to the placement and entitlement offer and would like to acknowledge the support shown by existing and new investors to the equity raise,” he said.

“We are particularly excited about taking the Kidston Pumped Hydro Project to financial close and retaining full ownership and control of the project,” James added.

GNX expects the placement and IEO to be completed on April 6.

Genex Power shares are down 7.26 per cent, trading at 23 cents at 3:28 pm AEDT.

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