Triangle Energy (Global) Ltd has raised more than $150,000 through a pro-rata, non-renounceable, fully underwritten entitlement offer.
The entitlement offer gave holders the chance to subscribe for company options at an issue price of $0.001 each and on the basis of 1 new quoted option for every 2 shares held on the record date.
Each new option will have an exercise price of $0.035 each and expire on August 4, 2023.
Triangle to issue more than 3 million options
As a part of the entitlement officer, which closed on July 28, 2021, the company planned to issue up to 310,381,741 new options to raise around $310,000, before costs.
The company has received valid applications for 150,276,755 options from eligible shareholders to raise $150,277.59, leaving a shortfall of 160,104,833 options, which CPS Capital Group Pty Ltd will fully underwrite.
Funds raised from the issue of new options will be put towards the costs of the entitlement offer and for general working capital.
Meanwhile, proceeds raised from the exercise of new options (if any) will support the continued development of TEG’s existing projects and for general working capital.
Fully underwrite the entitlement offer
CPS Capital Group has agreed to fully underwrite Triangle Energy's entitlement offer.
According to the company, the directors reserve the right to issue shortfall options at their absolute discretion within three months of the closing date of the offer, subject to certain restrictions imposed by the corporations' act and the listing rules.
All shortfall options shall be issued on the same terms as the quoted options being offered under the entitlement offer.
$10 million placement
This entitlement 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.
Funds raised through the placement will be applied to:
- Cliff Head Oil Field: CH6 Workover (re-entry) and CH11 Water Injection slickline intervention. These workovers are planned to commence in the coming weeks. Well planning will also be initiated for the drilling of South-East Nose, West High and Mentelle as well as grouting work on CH10;
- L7, EP-437 and WA-481-P Permits: Progressing with the seismic planning at L7 and EP-437 Permits and the exploration evaluation at WA-481-P; and
- Corporate and working capital: Funds will be applied to the costs of the offer, working capital and undertaking a feasibility study for a Mid-West oil refinery and establishing a Cliff Head Infrastructure Future Fund which will provide a cash reserve for any planned or unplanned major project in Cliff Head.
“Establish Cliff Head Future Fund”
Speaking to the placement, Triangle managing director Rob Towner said: “This is a true sign that investment in potentially diverse energy companies is strong.
“We are also allocating funds to establish the Cliff Head Future Fund, which will provide a cash reserve for any planned or unplanned major project in Cliff Head so as to ensure that necessary works may be undertaken without delay.”