Global Energy Ventures Ltd (ASX:GEV) is out to raise $12 million to advance development work across its Tiwi Islands green hydrogen play.
The hydrogen export hopeful is off to a great start with the capital raising having secured firm commitments to raise $10 million from institutional investors under a placement of 80 million shares.
GEV is also hoping to secure $2 million under a non-underwritten share purchase plan to eligible investors.
The cash injection will help the ASX-lister:
- Complete a feasibility study on the Tiwi Green Hydrogen Project;
- Advance engineering and approvals work for its 430-tonne, pilot-scale compressed hydrogen ship;
- Cover administration costs; and
- Provide general working capital.
Canaccord Genuity (TSX:CF, LSE:CF) Ltd’s Australian branch acted as lead manager and bookrunner to the placement, while Evolution Capital Pty Ltd beat the drum as co-manager.
Launch into upstream green hydrogen production
Speaking to the raise, GEV managing director and CEO Martin Carolan said: “The company is delighted to have attracted a number of new offshore institutional investors to the register, along with the ongoing support of existing and new Australian funds.
“The company’s launch into the upstream green hydrogen production with the Tiwi Green Hydrogen Project provides a unique investment opportunity as the company positions compression as a first-mover advantage into the production, storage and transport of hydrogen.
“The capital raising will accelerate the development of the Tiwi Green Hydrogen Project while also supporting our ongoing engineering, approvals and commercialisation for our proprietary ship design.”
Placement details
Under its $10 million placement, GEV will issue roughly 80 million shares at $0.125 apiece.
The pricing represents a 10.5% discount to the 15-day volume-weighted average price of $0.14, and a 2% premium to the 30-day volume-weighted average price on November 8.
Because the capital raise falls under Global Energy’s existing placement capacity, it will complete in one tranche.
GEV’s placement should settle on Wednesday, November 17.
Share purchase plan
Eligible shareholders can also get in on the capital raise with an upcoming share purchase plan.
Investors can buy up to $30,000 worth of GEV shares under the offer, with securities also priced at $0.125.
Of course, GEV can scale back applications as it sees fit, or accept more than $2 million in applications if it’s beneficial.
An indicative timeline of the share purchase plan is outlined below.
Green hydrogen facility
In late October, GEV announced it would work towards a first-to-last hydrogen supply chain with a production and export facility in the Tiwi Islands.
Eventually, the project is planned to export 100,000 tonnes of green hydrogen per annum to satiate hydrogen demand in the Asia Pacific.
When the project was first announced, NT Minister for Renewables and Energy Eva Lawler said: “I welcome GEV’s announcement that it has selected the Tiwi Islands for its renewable hydrogen project and that it is working closely with the Tiwi Land Council and the Traditional Owners of the land.
“With our world-class solar resources and our proximity to key export markets, the Northern Territory is an ideal place to generate renewable hydrogen to meet the future demand within our region.
“We look forward to supporting GEV through our investment facilitation team to progress the project through to operation.”
