- Jade Gas (JGH) launches a strategic share placement to raise $10.7 million
- JGH executed a subscription agreement with UB Metal (UBM) for the funds, with shares priced at six cents — a 27.7 per cent premium to its last closing price
- UBM is Mongolia’s largest importer of natural gas and will become a 19.9 per cent shareholder in Jade as a result of the placement
- Jade says the funds will primarily go towards its pilot production program, which is designed to prove the commercial capability of the TTCBM project in Mongolia
- Jade Gas Holdings is up 6.38 per cent, trading at 5 cents at 12:51 pm
Jade Gas (JGH) has launched a strategic share placement to raise $10.7 million.
The company executed a subscription agreement with UB Metal (UBM) for the funds via a placement of 178,630,800 JGH shares at six cents per share.
The price represents a 27.7 per cent premium to the last closing price of JGH shares of 4.7 cents and a 23.7 per cent premium to the 30-day volume weighted average price.
UBM is Mongolia’s largest importer of natural gas in the form of liquified natural gas (LNG) and will become a 19.9 per cent shareholder as a result of the placement.
Under the terms of the placement, UBM will be entitled to nominate a candidate to the Jade board of directors.
Jade said the funds raised would primarily go towards its pilot production program, which was designed to prove the commercial capability of the Tavan Tolgoi XXXIII unconventional oil basin in Mongolia (TTCBM project).
“Our strategic partnership with UBM is very important in the context that we both share a mutual goal to decarbonise Mongolia with a cleaner source of energy,” Jade Managing Director and CEO Chris Jamieson said.
“Importantly, Jade is aiming to become a meaningful and new domestic option with secure and reliable gas.”
The new shares in the placement will rank equally with the company’s existing fully paid ordinary shares.
Jade Gas shares were up 6.38 per cent and trading at 5 cents at 12:51 pm.