Elixir Energy Secures $6.25 Million for Grandis Project Expansion
EXR (EXR) Share Update July 2024 Wednesday 24th
Elixir Energy Announces $6.25 Million Share Placement for Grandis Project
Elixir Energy Limited (ASX: EXR) has successfully raised $6.25 million through a share placement to institutional and sophisticated investors, aimed at funding the next phases of its Grandis Project.
Instant Summary:
- Elixir Energy raises $6.25 million through share placement.
- 62.5 million new shares issued at 10 cents per share.
- Placement includes one EXROB option for every four shares issued.
- Funds to support the next phases of the Grandis Project.
- Placement was oversubscribed, introducing new institutional investors.
Placement Details
Elixir Energy Limited (Elixir or the Company) has announced the successful raising of $6.25 million through a share placement. This placement involves the issuance of 62.5 million new shares to institutional and sophisticated investors at a price of 10 cents per share, representing a 13% discount to the last close and a 12.7% discount to the 5-day VWAP.
Participants in the placement will also receive one of Elixir's currently listed options (EXROBs) for every four shares issued. These EXROB options have an exercise price of 12 cents and will expire on 17 October 2026.
Use of Funds
The capital raised will be used to support the next phases of the Grandis Project. This includes dealing with potential contingencies arising from the imminent multiple stage stimulation and flow testing program at the Company's Daydream-2 well. Additionally, the funds will help position the Company for the next phases of Project Grandis, such as ordering long lead items for the next well and improving the negotiating position for potential farm-out negotiations post the flow testing phase.
Market Response
The placement was strongly supported, with demand exceeding the placement size. This has introduced a number of new institutional investors to Elixir's register, reflecting strong market confidence in the Company's future prospects.
The 62.5 million Placement Shares will be issued under listing rule 7.1 A, and the 18,750,000 Listed Options will be issued under listing rule 7.1. The new shares are expected to be issued on Wednesday, 31 July 2024.
The successful raising of $6.25 million is a positive development for Elixir Energy, providing the necessary funds to advance the Grandis Project. The oversubscription of the placement indicates strong investor confidence and could lead to a positive impact on the Company's stock price. The introduction of new institutional investors may also enhance market perception and liquidity of the stock.
Investor Reaction:
Elixir's Managing Director, Mr. Neil Young, expressed satisfaction with the financial support received from both existing and new investors. He highlighted that the funds will be crucial for the final phases of the Daydream-2 program and the subsequent stages of Project Grandis. Analysts have noted the strategic importance of the funds in positioning the Company for future growth.
Conclusion:
Elixir Energy's successful share placement is a significant milestone in the Company's journey to advance the Grandis Project. Investors should keep an eye on the progress of the Daydream-2 program and the subsequent phases of Project Grandis. The Company's strategic use of the raised funds will be key to its future success.