88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has launched a A$9.9 million (£5.3 million) placing with the proceeds earmarked to support its ambitions in Alaska and Namibia.
The new shares are to be sold at 0.45 Australian cents, which is an 18.20% discount from yesterday’s closing price on the Australian Securities Exchange.
It is being executed through a bookbuild process managed by brokers Cavendish Capital Markets in the UK, and EurozHartleys and Inyati Capital in Australia. Investors will be granted warrants and options as part of the placing.
88 Energy noted recently, in its financial report, that it already had a robust cash position, with A$10.2 million as of 30 September.
Proceeds from the capital raise will support the flow testing of multiple zones in the Hickory-1 well at Project Phoenix, along with the company’s initial farm-in exploration activities in Namibia, 88 Energy noted.
It will otherwise boost the company’s working capital position.