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Pure Hydrogen (ASX:PH2) raises $9.4M for new future

Energy
ASX:PH2      MCAP $37.64M
22 March 2021 16:00 (AEST)

On the back of its recent merger, energy company Pure Hydrogen (PH2) has raised $9.4 million before costs, through a placement to investors.

After months of delay, energy companies Real Energy (RLE) and Pure Hydrogen finally completed the merger of their two businesses on March 17, 2021. The following day, the resulting entity of the merger, Pure Hydrogen, entered a trading halt in preparation for a capital raise. 

The company has now completed its placement to sophisticated and institutional investors, which was well supported by both existing and new shareholders.

Through the placement, Pure Hydrogen issued 32,430,346 CHESS depositary interests (CDI) and shares in the company, at 29 cents each. These were accompanied by half an option for every CDI or share which investors subscribed for.

Each full option will be unquote and exercisable into a share in Pure Hydrogen for 45 cents, until March 30, 2023. 

Pure Hydrogen will use the proceeds from the placement to fund the progression of its various hydrogen operations, initiatives, and projects. 

In particular, the company plans to conduct flow testing of the pilot well at Project Venus in Queensland’s Surat Basin. This work will take place over the next three months.

Pure Hydrogen’s Managing Director, Scott Brown, commented on the company’s status after its fundraising efforts.

“Pure is now very well-funded to execute it business plan, particularly around our well-advanced activities in building a large hydrogen business that establishes the company as a meaningful player in the hydrogen economy, a sector that is attracting considerable investment,” he said.

“Whilst we are pleased with the progress to date, these new funds raised give us much greater flexibility to grow our hydrogen operations more aggressively,” he added.

Pure Hydrogen is down 4.76 per cent, trading at 30 cents per share at 1:43 pm AEDT.

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