Tlou Energy Limited (LON:TLOU) (ASX:TLOU) has raised AU$1.2mln, in a premium priced placing, to ease what was described as “near-term financial pressure”.
The company, in a statement, revealed that it will issue new shares to "Sophisticated" existing shareholders at a price of 10 Australian cents per share, a 5% premium to the ASX closing price on Friday.
"We welcome the confidence shown in the company by the two existing shareholders who participated in this strategic placement,” said Tony Gilby, Tlou chief executive.
“The additional capital also removes perceived near-term financial pressure from the company, as upon any successful gas flows and/or tender result we will not need to immediately raise capital. Rather, this allows the company ample time to assess the available financing options and to help position Tlou Energy as part of the solution to the looming regional power shortage,” he added.
The subscribing shareholders agreed to a voluntary 12-month escrow of the new shares, meaning they can’t be sold in the first year following the placing.
In a note to clients, analysts at ‘house’ broker Shore Capital pointed out: “Our last published fair value estimate for Tlou stands at approximately 25p/share, and we envisage only a minor adjustment to our valuation due to the minimal level of placing-related dilution (2.85% of the enlarged share capital)."
They added: “With an active work programme underway and strong progress being made with initial development operations at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”
In mid-morning trading, share in Tlou Energy were 8.1% higher at 6.00p.
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