Highlights
- Completion of the non-renounceable rights issue of one (1) fully paid ordinary share in the Company (New Share) for every ten (10) existing shares. Issue price of A$0.006 per share (£0.0031).
- Total committed proceeds raised from the Rights Issue of A$3.3 million / approx. £1.7 million (before costs).
- Funds to be directed towards the Hickory-1 well flow test at Project Phoenix, planning and permitting for a potential new well at Project Leonis, development wells for Project Longhorn production growth and working capital.
88 Energy has announced the completion of its non-renounceable rights issue (Rights Issue) of one (1) fully paid ordinary share in the Company (New Share) for every ten (10) existing shares held, at an issue price of A$0.006/£0.0031 per Share, as announced on Monday 31 July 2023.
The Rights Issue closed at 5:00pm AWST on Tuesday 22 August 2023. Following the processing of valid applications, the Company will issue 553,070,348 New Shares to eligible shareholders under the Rights Issue, being 342,496,374 New Shares for entitlements taken up by eligible shareholders and 210,573,974 New Shares for additional subscriptions (above entitlement) received from eligible shareholders.
The Company will now seek to place in full all of the 1,457,716,474 New Shares not taken up under the Rights Issue via the Shortfall Offer under the Company's placement capacity pursuant to ASX Listing Rules 7.1 and 7.1A, with the ability to accept oversubscriptions at the Company's absolute discretion subject to demand and available placement capacity under the ASX Listing Rules (Placement).
The proceeds of the Rights Issue of A$3.3 million / approx. £1.7 million (excluding the Shortfall Offer), together with the Company's existing cash reserves (A$7.3 million (approx. £3.8 million) as at 30 June 2023), will strengthen the Company's balance sheet and provide the Company with further capital to fund 88 Energy's share of the Hickory-1 well flow test at Project Phoenix, permitting and planning for a potential new well at Project Leonis, development wells for Project Longhorn production growth.
Source: 88 Energy
