Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has today opened its Share Purchase Plan following the initial announcement on May 3, 2024, and is aiming to raise $2 million.
This SPP offer targets holders of fully paid ordinary shares registered in Australia or New Zealand, who can apply for up to 30,000 new fully paid shares each.
The issue price under the SPP is A$0.04, which represents a 16% discount to the closing price of shares on April 30, 2024, and a 12% discount to the volume weighted average price of shares for the five trading days to April 30, 2024.
The offer is set to close at 5.00 pm (AWST) on Friday, May 31, 2024, and may be extended, withdrawn, or closed earlier at the discretion of the company.
Participants subscribing to new shares under the SPP will receive one free SPP option for every three new shares purchased. Each SPP option allows the acquisition of an additional share at A$0.075 and expires two years post-issuance.
Eligible shareholders have the opportunity to apply for new shares in amounts ranging from A$1,000 to A$30,000. Furthermore, the SPP is partially underwritten by Provaris' major shareholders to a total value of A$1 million.
Provaris cashed up
The SPP comes after the company secured a two-year A$3 million convertible note facility with Macquarie Bank Ltd.
A first tranche of A$500,000 convertible bond has been executed as part of the facility agreements, with a two-year term to maturity.
The money raised from the SPP will support the advancement of Provaris’ proprietary intellectual property and solutions focused on the storage and marine transportation of hydrogen in compressed form.
This includes funding for the development of a prototype tank and securing Marine Classification Approvals for its H2Neo hydrogen carrier and the H2Leo storage barge.
Additionally, the funds will aid in the creation of small-scale storage tank solutions tailored for industrial storage applications.
Provaris is also dedicating resources towards the progression of hydrogen production and export project development opportunities.