Botala Energy Ltd (ASX:BTE) has received firm commitments to raise around $850,000 (before costs) at an issue price of A$0.075 in a two-tranche placement.
The issue price of A$0.075 per share is equal to the 10-trading day Volume Weighted Average Price (VWAP) of BTE’s shares.
Tranche 1 will see approximately 1.7 million new shares issued while in tranche 2 approximately 9.6 million additional new shares will be issued to members of the board (or their respective nominees), subject to shareholder approval.
Shares will be issued on or around August 12 2024.
Share purchase plan
In addition, Botala plans to undertake a share purchase plan (SPP) to raise up to an additional A$650,000, taking total potential raising proceeds to $1.5 million.
All eligible existing shareholders on Botala’s share register as at 7:00pm (Perth time) on Friday, August 2, 2024, and with a registered address in Australia or New Zealand will be offered the opportunity to apply for new Botala shares through the SPP without brokerage, commission or transaction costs.
The SPP is not underwritten and new shares to be issued under the SPP will be issued at the same price as the placement of A$0.075.
Applications for new shares under the SPP will be capped at the statutory maximum allowed of A$30,000 per eligible shareholder, across all of their holdings.
The SPP offer period is intended to open on Monday, August 12, 2024, and close at 5:00pm (Perth time) on Friday, August 23, 2024.
"Strongly backed"
"Management and the Botala board have strongly backed this raising. We believe in the project and are excited with ongoing negotiations," Botala Energy CEO Kris Martinick said.
"It is also fantastic to see the support shown by our existing investors and new investors for our projects."
“The funds secured positions the company to focus on securing a strategic development partner.”
Funds to go to Serow development
Funds raised will support the development of the Serowe Coalbed Methane (CBM) Project in Botswana, including BTE’s inaugural commercial pilot program.
The funds will also be allocated to research and development of renewables projects, general working capital and costs associated with the placement and SPP.
Botala Energy is targeting gas production primarily from the promising Serowe and Upper Morupule coal seams.