State Gas Limited Successfully Completes Institutional Entitlement Offer
STATE GAS LIMITED (GAS) Share Update August 2024 Monday 5th
State Gas Limited Completes Institutional Component of Entitlement Offer
State Gas Limited (ASX: GAS) has successfully completed the institutional component of its accelerated non-renounceable entitlement offer, raising approximately $3.0 million.
Instant Summary:
- Institutional Entitlement Offer raised approximately $3.0 million.
- Offer price set at $0.05 per New Share.
- One 12-month option exercisable at $0.08 for every 2 New Shares issued.
- Strong support from existing shareholders.
- Retail Entitlement Offer to open on 8 August 2024.
Successful Fundraising
State Gas Limited (Company) (ASX:GAS) has announced the successful completion of the institutional component of its 1 for 2 accelerated non-renounceable entitlement offer. The offer price was set at $0.05 per New Share, and for every 2 New Shares issued, shareholders received one 12-month option exercisable at $0.08.
The Institutional Entitlement Offer closed on 2 August 2024, with the Company receiving strong support from existing shareholders. Approximately 59.3 million New Shares were allocated, raising around $3.0 million. This was completed alongside an institutional placement on the same terms, which raised an additional $2.0 million.
Prospectus and Timetable
The Prospectus for the Entitlement Offer was lodged with ASIC and ASX on 5 August 2024 and will be dispatched to eligible retail shareholders around 8 August 2024. The Retail Entitlement Offer is set to open on the same day.
The indicative timetable for the Entitlement Offer includes several key dates:
- 5 August 2024: Placement and Entitlement Offer announced.
- 6 August 2024: Results of Institutional Entitlement Offer announced.
- 8 August 2024: Retail Entitlement Offer opens.
- 22 August 2024: Closing Date for Retail Entitlement Offer.
- 30 August 2024: Trading in New Shares under Retail Entitlement Offer commences.
The successful completion of the Institutional Entitlement Offer and the additional funds raised through the institutional placement will provide State Gas Limited with significant capital to further its exploration and development projects. The strong support from existing shareholders is a positive indicator of confidence in the company's future prospects.
Investor Reaction:
Analysts are likely to view the successful fundraising as a positive development for State Gas Limited. The additional capital will enable the company to accelerate its projects and potentially increase its market share in the gas exploration and development sector.
Conclusion:
Investors should keep an eye on the upcoming Retail Entitlement Offer and the company's progress in utilizing the newly raised funds. The successful completion of the Institutional Entitlement Offer is a promising step forward for State Gas Limited.