Elixir Energy Ltd (ASX:EXR) is raising up to $10.5 million via a $7 million placement to institutional and sophisticated investors and a share purchase plan (SPP) to existing shareholders for up to $3.5 million.
The company will issue around 100 million new shares through the placement at 7 cents per share, which is a 14.6% discount to the last close and a 16.0% discount to the 5-day VWAP, with the SPP to be delivered on the same terms.
Funds from the raise will be used to fully fund EXR’s projects in Australia and Mongolia:
“We are very pleased to procure this financial backing from existing and new shareholders to support our projects in Australia and Mongolia – in particular the imminent drilling of the high impact Daydream-2 well,” Elixir’s managing director Neil Young said.
“The SPP element of the capital raising is designed to provide all shareholders with the opportunity to support the company on the same terms as for the placement participants.
"We look forward to keeping all of our shareholders well informed as we approach the spud date for Daydream-2, which we view as a pivotal catalyst in the company’s growth plans.”
About the raise
Placement participants will receive one option for every two placement shares issued, with the options to have an exercise price of 12 cents (a 71.0% premium to the placement price) and a term of three years.
Several members of Elixir’s Board of Directors will also participate in the placement for an aggregate amount of around $150,000.
Ord Minnett Limited and Originate Capital Pty Ltd acted as joint lead managers to the placement with Evolution Capital Pty Ltd acting as co-manager.
The SPP will be offered to existing shareholders with a record date of August 25, 2023, through the issue of new fully paid ordinary shares at 7 cents per share, in line with the placement.
This will target gross proceeds of up to $3.5 million.
SPP investors will receive listed options on identical terms as for the placement options.
The company will release the timing in due course.