Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) will use A$1.5 million raised in a well-subscribed placement to support priority business development activities in Europe related to hydrogen and CO₂ as well as preparations for the future restart of its prototype tank program.
This share placement at A$0.02 per share was supported by institutional, sophisticated and professional investors, with 75 million new fully paid ordinary shares to be issued.
The issue price represents a 5% discount to the last trade and a 10% discount to the 30-day Volume Weighted Average Price as at November 1, 2024.
Strong support
As well as attracting support from a new Australian institution and international corporate investor, the placement has also been strongly supported by directors who have subscribed for shares totalling $125,000, which will be subject to shareholder approval at a future planned EGM.
Provaris managing director and CEO Martin Carolan said: “The company is delighted with cornerstone support from a new Australian institution and international corporate investor in the placement and we also thank the ongoing support from existing major shareholders.
"Provaris continues to advance the commercial and technical steps required for compressed hydrogen to be recognised as an enabler for regional production, storage and transport of bulk-scale hydrogen into North West Europe, addressing the industry challenges of cost, complexity and efficiency.
READ: Provaris Energy progresses key hydrogen and CO₂ initiatives in Europe during quarter
"The recognition of our unique and proprietary solutions for storage and marine transport of gases is also creating early-stage commercial pathways in the established CO₂ shipping sector where the introduction of higher-volume CO₂ tanks and ships can reduce the storage and shipping costs,” he added.
Placement details
The placement will settle in one tranche with the new shares to be issued under the company’s existing ASX Listing Rules 7.1 and 7.1A placement capacity.
Settlement of the placement is expected to occur on Tuesday, 12 November 2024 and the New Shares will rank equally with the company’s existing fully paid ordinary shares on issue.
Bridge Street Capital Partners (WA:CPAP) acted as lead manager to the placement.