Elixir Energy Ltd (ASX:EXR) has received binding bids to raise $6.5 million via a placement to institutional and sophisticated investors.
The funds raised will primarily used to expand its imminent Daydream-2 stimulation and testing program at the Grandis Gas Project in Queensland’s Taroom Trough.
This will include pursuing new options arising from the recent free gas flow announced last week.
The placement involves the issue of around 76 million new Elixir shares to institutional and sophisticated investors at a price of 8.5 cents — a 15% discount to the last close and a 17% discount to the 5-day VWAP.
Placement participants will also receive one of Elixir’s currently listed options (EXROB) for every three placement shares issued. The EXROB options have an exercise price of 12 cents and expire on October 17, 2026.
Elixir says that as a share purchase plan (SPP) was offered to shareholders less than three months ago, the company has decided not to repeat an SPP offer at this time.
The new shares are anticipated to be issued on December 19, 2023.
