Triangle Energy (Global) Limited (ASX:TEG) (FRA:WMOA) has launched a pro-rata non-renounceable entitlement offer to eligible shareholders of quoted options in the company.
The company will issue up to 310,381,741 new options to raise up to approximately $310,000, before costs.
TEG has set the price at A$0.001 each with the offer based on one new quoted option for every two shares held on the record date.
Each new option will have an exercise price of A$0.035 each and an expiry date of August 4, 2023.
This offer follows hot on the heels of the company receiving commitments for $10 million in a placement to new and existing sophisticated, institutional and professional investors looking for exposure to the oil & gas sector.
Advancing project development
Funds raised from the issue of the new options will be used towards the costs of the entitlement offer and for general working capital.
Proceeds raised from the exercise of the new options (if any) will be used towards the continued development of TEG’s existing projects and for general working capital.
CPS Capital Group Pty Ltd has agreed to fully underwrite the entitlement offer.
Shortfall
Any entitlement not taken up pursuant to the entitlement offer (if any) will form the shortfall.
Eligible shareholders will not be entitled to apply for quoted options under the shortfall.
The directors reserve the right to issue shortfall options at their absolute discretion within three months of the offer closing date, subject to any restrictions imposed by the Corporations Act and the Listing Rules.
Applications for the shortfall to satisfy the terms of the underwriting agreement are to be made by completing the shortfall offer application form and providing Triangle Energy with payment for those shortfall options in accordance with the instructions on the shortfall application form.
Effect on TEG's capital structure.