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Lion Energy (ASX:LIO) eyes $9.6m for green hydrogen strategy

ASX News, Mining
ASX:LIO      MCAP $8.591M
17 November 2021 15:06 (AEDT)
Lion Energy (ASX:LIO) - Executive Chairman, Tom Soulsby

Source: Tom Soulsby/LinkedIn

Lion Energy (LIO) has received firm commitments to undertake a $9.6 million capital raising.

The company entered a trading halt on November 15 but did not disclose how much it intended to raise it what it would use the funds for.

The capital raising will be undertaken in three phases, with phase one to issue 76.25 million shares priced at 8 cents to raise $6.1 million.

The second phase has been committed via convertible notes from existing and new shareholders to raise $3.37 million.

Participants in both phases will receive one free option for every two subscribed for, exercisable at 12 cents with an expiry 30 months from issue.

Subject to shareholder approval, the third phase will be undertaken by Executive Chairman Tom Soulsby and Executive Director Damien Servant to raise $125,000.

Lion will use the money from all three phases to explore business opportunities in green hydrogen in Australia and as working capital.

“We are pleased to work with the team at Peak again to support Lion’s potential foray in the green hydrogen business in Australia,” Mr Soulsby said.

“We will outline more details of our Australian hydrogen strategy to investors shortly.”

Lion was down 4.12 per cent on the market with shares trading at 9.3 cents at 3:05 pm AEDT.

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