Frontier Energy Ltd (ASX:FHE) has raised $10 million at an issue price of $0.42 per new share in a strongly supported placement that highlights the support for its Bristol Springs Green Hydrogen Project in Western Australia..
Evidence of that support came via executive chair Grant Davey’s subscription for $1 million of the placement.
With $13 million in cash, FHE is now fully funded through to a Final Investment Decision (FID), expected during 2H 2023.
The raise is a:
- 4.5% discount to last closing price ($0.44) on October 14, 2022; and
- 2.0% discount to the 10-day VWAP ($0.429) on October 14, 2022.
Where’s the money going?
The money will be used to advance the Bristol Springs Hydrogen Project, in particular:
- Early works at the project site.
- Hydrogen refuelling station development.
- Energy Storage and System Security (Hydrogen Peaking Plant) studies.
- General working capital and corporate costs.
Placement details
New shares under the placement will be issued in two tranches.
In Tranche 1, FHE will issue about 21.4 million new shares at an offer price of A$0.42 per new share, to raise gross proceeds of A$9 million.
Tranche 2 is subject to shareholder approval and FHE will issue around 2.4 million new shares to executive chair Grant Davey at an offer price of A$0.42 per new share, raising gross proceeds of $1 million.
Settlement of Tranche 1 is expected to occur on Monday, October 24, 2022, with new shares allotted on Tuesday, October 25, 2022.
“We are delighted to announce the completion of the placement, which will enable the company to continue its operational strategy of advancing the Bristol Springs Project," FHE managing director Sam Lee Mohan said.
"We thank all our existing and new shareholders for their notable support in the placement.”