BPH Energy Secures $1 Million to Accelerate Hydrocarbon and Cortical Investments
BPH (BPH) Share Update August 2024 Sunday 11th
BPH Energy Raises $1 Million to Boost Hydrocarbon and Cortical Investments
BPH Energy Limited (ASX: BPH) has successfully raised $1.044 million through a new placement to fund its hydrocarbon projects and support Cortical Dynamics' expansion.
Instant Summary:
- Raised $1.044 million through a Placement at $0.018 per share.
- New sophisticated investors, including high net worth individuals and resource funds, participated.
- Participants will receive one Attaching Option for every two New Shares subscribed.
- Funds to be used for hydrocarbon projects and Cortical Dynamics' development.
Capital Raising Details
BPH Energy Limited has announced that it has received binding commitments to raise $1.044 million before costs through a Placement. This will involve issuing 58,028,337 new fully paid ordinary shares at an issue price of $0.018 per share. The Placement Shares will be issued under the company's existing placement capacity as per ASX Listing Rule 7.1A.
Participants in the Placement will receive one free Attaching Option for every two Placement Shares subscribed, exercisable at $0.03 each and expiring 12 months from the date of issue. The issuance of these Attaching Options is subject to shareholder approval at a general meeting scheduled for 25 September 2024. The company will seek approval for a total of 29,014,168 Attaching Options.
New Investors and Use of Funds
The Placement has attracted new sophisticated investors, including high net worth individuals, family offices, and dedicated resource funds. This funding will enable BPH Energy to accelerate its exploration programs, particularly in light of the current gas supply crisis. Additionally, it will support the next phase of Cortical Dynamics Limited's expansion.
The proceeds from the Placement will be allocated as follows:
- $0.794 million for exploration and development of oil and gas investments.
- $0.1 million for working capital, including costs of the offer.
- $0.15 million for funding Cortical Dynamics.
Placement Details and Market Impact
The Placement offer price of $0.018 per share represents an 18.2% discount to BPH's closing price of $0.022 per share on 7 August 2024, and a 16.3% discount to the 5-day VWAP of $0.0215 per share. Settlement of the Placement is expected to be completed around 15 August 2024.
Oakley Capital Partners Pty Limited and 62 Capital Limited acted as Joint Lead Managers for the Placement. They will receive a cash fee of 5.5% on the funds raised and, subject to shareholder approval, 16,666,667 Broker Options exercisable at $0.03 each, expiring 12 months from the date of issue.
The company will seek quotation of the Attaching Options and Broker Options, subject to ASX Listing Rule requirements being met. The Placement Shares will rank equally with existing fully paid ordinary shares.
The successful capital raising is likely to positively impact BPH Energy's stock as it demonstrates strong investor confidence and provides the company with the necessary funds to advance its projects. The introduction of sophisticated investors and resource funds can also enhance the company's credibility and market position.
Investor Reaction:
Analysts are expected to react positively to the news, given the strategic importance of the funds raised for BPH Energy's hydrocarbon projects and Cortical Dynamics' development. The participation of high net worth individuals and resource funds is seen as a vote of confidence in the company's future prospects.
Conclusion:
Investors should keep an eye on BPH Energy's upcoming general meeting on 25 September 2024 for shareholder approval of the Attaching Options and Broker Options. The successful execution of the company's plans could lead to significant value creation for shareholders.