IPB Petroleum has received firm subscriptions for a placement to professional and sophisticated investors of approx. 97.42 million new ordinary shares in the Company at an issue price of 0.9 cents per share to raise approx. $0.87 million before costs. The Company is also pleased to advise that it intends to offer shareholders the opportunity to participate in a 1:2 pro-rata non-renounceable rights issue at the same issue price of 0.9 cents per share to raise up to approximately $2.49 million before costs.
PLACEMENT
The proceeds of the Placement will be applied towards funding activities including:
- Progressing Farmout activities for permit WA-424-P (IPB 100%) (1)
- Progress discussions with regulators and government for proposed work programme for WA-424-P including a Retention Lease application and associated engineering studies
- Progressing technical and commercial investigation into complementary oil and gas opportunities locally and overseas
- General working capital
The Placement, managed by Chieftain Securities, received strong support from existing and new professional and sophisticated investors.
The Placement issue price of 0.9 cents per share represents a 24 % discount to IPB’s 15-day volume weighted average price per IPB share as traded on ASX of 1.183 cents. Fees payable to Chieftain total 6% of the funds raised under the Placement.
Settlement of the Placement shares is expected to occur on 16 February 2023.
Following settlement of the Placement shares, representing approximately 21.3% of the Company’s existing shares, the Company’s issued share capital will expand from approximately 456.4 million shares to approximately 553.8 million shares. The Placement shares will be issued under a single tranche within the Company’s existing placement capacity, with approximately 51.79 million issued under ASX Listing Rule 7.1 and approximately 45.64 million under ASX Listing Rule 7.1A.
PROPOSED RIGHTS ISSUE
The Company further announces that it has also resolved to proceed with a non-renounceable rights issue of 1 new share forvevery 2 shares held on the record date at 0.9 cents per share. Accordingly, including new shareholders via the Placement, the Company proposes to issue up to 276.9 million shares under the Rights Issue, raising an additional $2.49 million (before costs). The issue price under the proposed Rights Issue is the same as under the Placement.
The proceeds of the Rights Issue will be as described in more detail in the Prospectus to be released by the Company. IPB proposes to apply funds received for the Rights Issue towards:
- Progressing technical and commercial investigation and associated activities into complementary oil and gas opportunities locally and overseas
- General working capital
- Progress proposed work programme activities for WA-424-P including a potential Retention Lease application and associated engineering studies
The Rights Issue will not be underwritten. The Company has engaged Chieftain as lead manager in relation to the placement of any shortfall under the Rights Issue. Fees payable to Chieftain will include 4% of any shortfall placed in respect of the Rights Issue.
(1) IPB has plans to farmout an interest in WA-424-P for the drilling of an appraisal well to be named Idris-1 to test the updip presence of the oil accumulation intersected in the Gwydion-1 well.
Source: IPB Petroleum
