Global Energy Ventures Ltd (ASX:GEV) has taken its capital raising proceeds to almost $10.54 million after this week completing a non-underwritten share purchase plan (SPP) to eligible investors.
There will be 4.31 million new fully paid ordinary shares issued at $0.125 per share for total SPP proceeds of $538,750.
This SPP follows GEV’s successful placement of $10 million to institutional investors announced on November 11, 2021.
“Very well positioned”
GEV’s non-executive chairman Andrew Pickering said: “We appreciate the support from shareholders for the share purchase plan.
"Together with the proceeds from the placement completed in November, the company is now very well positioned to deliver on the exciting growth opportunities in our development program for 2022.”
The SPP shares will be issued on Tuesday, December 21, 2021, and quoted on ASX on Wednesday, December 22, 2021, with holding statements anticipated to be dispatched on or around the same date.
Use of funds
This capital raising will help GEV to:
- 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.
Follows placement
Under the $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.
Canaccord Genuity (TSX:CF, LSE:CF) Ltd’s Australian branch acted as lead manager and bookrunner to the placement, while Evolution Capital Pty Ltd was co-manager.
“Unique investment proposition”
Speaking to the capital raise, 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.”
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.