Pilot Energy Ltd (ASX:PGY) has received commitments for $8 million in a placement to new and existing sophisticated, institutional and professional investors.
Strong interest was shown in the placement, along with support for the company’s strategic focus of continuing its oil & gas exploration and production operations as well as transitioning to the development of integrated renewable energy, hydrogen and carbon management projects - leveraging its existing oil and gas infrastructure to cornerstone these developments.
“Exciting business plan going forward”
Pilot executive chairman Brad Lingo said: “The company is very pleased with the strong backing from existing and new shareholders in supporting the capital raise and the exciting business plan going forward.
“The next phase of the feasibility studies is crucially important to enabling Pilot to implement its strategic plans and become a leading energy provider of oil and gas, hydrogen and renewables to the midwest and southwest regions of Western Australia.
Placement details
Pilot appointed Bridge Street Capital Partners Pty Ltd to act as lead manager for this capital raising.
Under the terms of the placement, the company has agreed to issue 133,333,333 fully paid ordinary shares in the capital of the company to sophisticated and professional investor clients of Bridge Street at an issue price of $0.06 per share to raise $8 million before costs.
The issue price of $0.06 per share represents a 26.8% discount to the last closing price of $0.082 per share.
The placement will be executed in two tranches – Pilot expects the issue of tranche 1 shares to occur around July 1 with the issue of tranche 2 shares subject to the company obtaining shareholder approval for the issue pursuant to ASX Listing Rule 7.1.