Emperor Energy Ltd (ASX:EMP) has added A$1.12 million to the company coffers thanks to a strongly supported placement.
The energy stock secured firm commitments from new and existing sophisticated and professional shareholders to issue 35 million shares at 3.2 cents apiece.
Emperor also plans to distribute one placement option for every new share, subject to shareholder approval.
Use of funds
Going forward, EMP will use the cash injection to strengthen its balance sheet and establish a funding runway to support its exploration activities.
At present, the company is focused on developing both upstream and downstream assets in Australia, namely its flagship Vic/P47 permit in the Gippsland Basin of Victoria.
In fact, the capital raise comes soon after Emperor increased the net contingent resources at its Judith Gas Field by 48 billion cubic feet.
It meant the P50 un-risked prospective gas resource for EMP’s 100%-owned Vic/P47 permit rose 401 billion cubic feet to 2.249 trillion cubic feet on October 13, sending shares as much as 17.15% higher at the time.
Placement details
Emperor plans to issue 35 million new shares (under its existing placement capacity) on or around October 28.
The 3.2-cent issue price represents a 17.9% discount to the 15-day volume-weighted average price of 3.9 cents per share.
Moving ahead, the company plans to host its annual general meeting in November, when it will ask shareholders to approve the placement options (exercisable at 5 cents each within two years).
EverBlu Capital acted as lead manager to the raise.