- Invictus Energy (IVZ) will raise $8 million through a placement to fund exploration in Zimbabwe
- Specifically, the money will be used for a seismic campaign at the SG 4571 permit, as well as on drilling items and rig tendering for the Mzarabani-1 well
- Over 72.7 million shares will be issued to sophisticated and institutional investors at 11 cents per share — marking a 21.4 per cent discount to the last traded price on March 19
- Each investor will be given an unlisted option on a one-for-two basis, resulting in the issue of around 36.3 million new options
- They’ll be exercised at 17 cents within a three-year period
- Company shares are up 7.14 per cent and are trading at 15 cents
Invictus Energy (IVZ) has received firm commitments to raise $8 million through a private share placement.
The company will issue 72,727,273 fully paid ordinary shares to sophisticated and institutional investors at 11 cents per share. The issue price marks a 21.4 per cent discount to the last traded price of 14 cents on March 19 and a 10 per cent discount to the 15-day volume-weighted average price.
In addition, each investor will be given an attaching unlisted option on a one-for-two basis, resulting in the issue of 36,363,636 new options. The options will be exercised at 17 cents within a three-year period.
Invictus will use the money for an upcoming 2D seismic campaign at the SG 4571 permit which covers 250,000 acres of the Cabora Bassa Basin in northern Zimbabwe.
The energy stock will also use the funds for well designing, drilling items for the Mzarabani-1 exploration well, drilling rig tendering and for general working capital.
“We are extremely pleased with the excellent support received from new and existing shareholders and it is a strong endorsement of our Cabora Bassa Project and the exciting and world-class Mzarabani-1 prospect which the company is preparing to drill,” Managing Director Scott Macmillan said.
Invictus will be entitled to receive an attaching unlisted option on a one-for-eight basis at an exercise price of 17 cents within three years. This will result in another 9,090,909 options being issued.
Company shares are up 7.14 per cent and are trading at 15 cents at 11:50 am AEDT.