Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has received firm commitments to raise A$1.9 million from a well-subscribed placement to existing and new institutional and sophisticated investors at A$0.04 per share.
The proceeds of the placement will be used for the construction and testing in Norway of a prototype tank to receive final class approvals for Provaris’ proprietary H2Neo hydrogen carrier.
Notably, the placement received a strong show of support from the company’s directors, with a commitment to participate for a total of A$230,000, subject to shareholder approval.
“Key player”
Provaris managing director and CEO Martin Carolan said: “The company is delighted with the strong participation from existing and new institutional and professional investors in the placement.
“The funds will continue to mature our platform of projects and focus on the development of hydrogen supply chains in Europe, including the construction and testing of a hydrogen prototype tank in Norway in the March quarter of 2024.
“The successful testing of this prototype aims to secure Final Class Approvals, marking a substantial de-risking milestone for the readiness of Provaris’ shipping and storage solutions.
“The increasing attention and strategic focus on compression positions Provaris as a key player in delivering low-cost gaseous green hydrogen, crucial for meeting Europe’s ambitious goal of relying on 10 million tons per annum of imported volume by 2030.”
Placement summary
The placement will comprise the issue of 47.5 million new fully paid ordinary shares at an issue price of $0.04 per share, which represents a 15% discount to the 5-day volume weighted average price as of November 27, 2023.
As part of the placement, the company will issue one free unlisted option for every two shares subscribed for, resulting in a total of 23.75 million placement options to be issued.
These options will have an exercise price of A$0.075 per share and an expiration date two years from the options issue date; and are subject to shareholder approval at an EGM planned for February 2024.
Bridge Street Capital Partners acted as lead manager and bookrunner to the placement.