Global Energy Ventures (ASX:GEV) raises $6.3M for business development

• Global Energy Ventures (GEV) has completed its share placement after receiving commitments to raise $6.3 million in proceeds
• The company issued 63 million fully paid ordinary shares to institutional and sophisticated investors at 10 cents each
• The joint lead managers of the placement will receive a six per cent fee on the total amount raised
• Proceeds from the placement will fund the development of the company’s CNG Optimum business and C-H2 compressed hydrogen supply chain
• Global Energy Ventures is down 10.4 per cent and trading at 11 cents per share

Global Energy Ventures (GEV) has completed its share placement after receiving commitments to raise $6.3 million in proceeds.

Through the placement, the company issued 63 million fully paid ordinary shares in Global Energy Ventures to institutional and sophisticated investors. The shares were issued to new and existing investors at 10 cents each, producing $6.3 million in proceeds (before costs). 

The shares were issued at a 20 per cent discount to the company’s last traded price of 12.5 cents per share. The issue price was also an 18.2 per cent discount on the 15-day volume-weighted average price of 12.3 cents per share.

Global Energy Ventures’ Executive Chairman, Maurice Brand, commented on the company’s successful share placement. 

“The GEV board is delighted by the significant support received predominantly from new institutional investors along with continued support from existing institutional investors,” he said.

“The company is now comfortably funded to continue with business development opportunities for CNG Optimum and to support an accelerated development program for the new C-H2 supply chain and ship for the hydrogen economy which continues to receive global interest in the application of compression for both onshore and offshore loading and export applications for hydrogen,” he added.

In addition to funding development of the company’s CNG Optimum business and C-H2 compressed hydrogen supply chain, proceeds from the placement will also be used to cover offer costs and as working capital.

PAC Partners and KG Capital, which acted as joint lead managers to the placement, will receive a 6 per cent fee on the total amount raised through the placement.

Global Energy Ventures is down 10.4 per cent, trading at 11 cents per share at 12:05 pm AEDT.