HyTerra Ltd (ASX:HYT) will use more than A$1.945 million raised in a pro-rata non-renounceable rights issue to help fund a multi-well exploration drilling program focused on hydrogen and helium along the Nemaha Ridge in Kansas, USA.
The offer was made to eligible shareholders registered on April 12, 2024, to subscribe for four shares for every nine existing shares held by eligible shareholders at an issue price of $0.018 each to raise up to approximately $5.24 million before costs.
It was fully underwritten by RM Corporate Finance Pty Ltd in accordance with an underwriting agreement.
Use of funds
Funds raised will primarily be applied to executing a multi-well exploration drilling program along the Nemaha Ridge, Kansas, USA, which is set to begin in the third quarter of 2024, and pursuing growth activities.
When the offer closed at 5:00pm AWST on Monday, April 29, 2024, HyTerra had received valid applications for 108,063,723 new shares, raising a total of $1,945,148.06, before costs.
The board expresses appreciation to participating shareholders for their ongoing support to the company.
HyTerra's exploration targets span more than 9,600 acres in a region known for its natural hydrogen, with previous successful recoveries of hydrogen and helium.
The funds raised will also contribute to leasing high-priority acreage, acquiring geophysical data and advancing project and prospect evaluations.
Shortfall shares
A total of 183,182,524 new shares are available under the shortfall with the directors and the underwriter reserving the right to issue shortfall securities at their discretion, subject to any restrictions imposed by the Corporations Act and the Listing Rules.
New shares applied for by eligible shareholders under the offer will be issued on May 6, 2024, in accordance with the timetable announced to ASX on March 28, 2024.
This rights issue follows a placement that raised $878,400 through the issue of around 48.8 million shares with RM Corporate Finance serving as lead manager and underwriter.
Focus on clean energy
HyTerra was the first company to list on the ASX with a focus on white hydrogen, which is generated naturally by the Earth. White hydrogen potentially has much lower production costs and carbon emissions than man-made hydrogen.
White hydrogen's potential as a low-carbon feedstock or fuel has spurred millions in new investment and created a world rich with opportunities for first movers.
At the Nemaha Project in Kansas, USA, HyTerra holds 100% owned and operated leases across the emerging Nemaha High natural hydrogen and helium play fairway while the Geneva Project in Nebraska, USA, is a 16% earn-in interest in a joint development with Natural Hydrogen Energy LLC targeting natural hydrogen and helium.