- Vulcan Energy (VUL) launches a fully underwritten single-tranche placement to raise $109 million (€66 million)
- The company plans to raise the funds through the issue of 21.4 million shares at $5.10 per share — a 17.2 per cent discount to its last trading price
- The placement proceeds will go toward the development of VUL’s integrated renewable energy and lithium project execution strategy, as well as general working capital and corporate purposes
- Vulcan enters trading halt on Thursday morning, with the allotment of the new shares expected to occur on May 12
- Shares in VUL last traded at $6.16
Vulcan Energy (VUL) has launched a fully underwritten single-tranche placement to raise $109 million (€66 million).
The company said the proceeds would go towards the development of its integrated renewable energy and lithium project execution strategy, as well as general working capital and corporate purposes.
Specifically, VUL will use the cash boost to order long-lead items for its phase one lithium plant and phase one renewable energy plant. Additionally, it will enable further phase one project execution and phase two project development.
Under the placement, Vulcan plans to issue 21.4 million new shares at $5.10 per share, representing a 17.2 per cent discount to the company’s last trading price of $6.16 and a 14.7 per cent discount to its five-day volume weighted average price (VWAP) of $5.98.
Vulcan’s placement also contains a fixed Euro offer price of €3.08 per new share — an 18 per cent discount to its last trading price on the FSE of €3.755 and a 14.3 per cent discount to the five-day VWAP on the FSE of €3.59.
The company entered a trading halt on Thursday following the launch of the placement.
Vulcan confirmed the allotment of new shares would occur on May 12, while the quotation and commencement of trading of the new shares on the ASX and FSE will take place on May 15.
Vulcan’s Zero Carbon Lithium project aims to decarbonise lithium production and create the world’s first net carbon neural business through the co-production of renewable geothermal energy on a mass scale.
Prior to entering its trading halt, VUL shares last traded at $6.16.