Kinetiko Energy Ltd has boosted its bank balance by more than A$5 million as it strides toward helping resolve the energy crisis in South Africa by developing the country’s largest onshore natural gas resource.
These funds were raised in a renounceable pro-rata entitlement offer of up to 84,266,771 fully paid ordinary shares on the basis of one new share for every 16 shares held at an issue price of A$0.06 per share.
About the offer
The entitlement offer was for those registered as a holder of shares at the record date of May 20, 2024, with a registered address in Australia or New Zealand and certain other shareholders including, but not limited to, those with registered addresses in South Africa.
In a shortfall component, eligible shareholders were also able to apply for additional shares not validly applied for in line with their entitlement at A$0.06 per share.
Strong demand
The company received valid applications under the entitlement offer and shortfall offer for 84,266,769 new shares, being about 99.99% of the maximum subscription, raising approximately $5,056,006, before costs.
There were 65,758,529 new shares taken up under the entitlement offer, being about 78% of the maximum subscription, raising a total of approximately $3,954,512, before costs.
A total of 18,508,240 shortfall shares were placed by the company’s directors in line with the allocation policy set out in Section 1.2 of the offer document, being around 22% of the maximum subscription, raising approximately $1,110,494, before costs.
World-class resource
Kinetiko Energy has discovered a world-class resource, adjacent to widespread energy infrastructure and a domestic economy with an insatiable gas demand.
It is vitally important to South Africa that there are are cheap and reliable energy projects coming online in the short term as well as a strong development pipeline to sustain the population's energy requirements.
Kinetiko sees itself playing an important role in the facilitation of this energy source through the development of its well-advanced gas project and affirming its ability to supply reliable energy resources at scale in the region.
The pilot gas project Amersfoort is well advanced in exploration and well testing and is ideally positioned to provide economic gas to the region in the short, medium and long term.
Kinetiko is continuing to develop the Amersfoort Project as a strong proof of concept for shallow well gas to become a significant part of the energy solution in the short, medium and long term.