BY TATIRA ZWINOIRA
AUSTRALIAN energy firm Invictus Energy Limited (IEL) has issued a prospectus announcing another capital raising initiative for AUD2 000 000 (US$1 437 383,85) through a security purchase plan (SPP) offer.
This came hardly two weeks after IEL announced that it would issue 35 000 000 placement shares to professional and sophisticated investors at a price of AUD0,10 (US$0,071854654) per share to raise AUD3 500 000 (US$2 514 697,65).
The company later issued the 35 000 000 shares to complete the placement on January 6, pursuant to its existing placement capacity under the Australian Stock Exchange (ASX) rules.
However, as an additional capital raising initiative to bolster those efforts, IEL is now undertaking an SPP offer to eligible shareholders to raise an additional
AUD2 000 000 to enable eligible shareholders to participate in the capital raising initiative.
“The placement includes the issue of 17 500 000 free options, being one free option for every two shares subscribed for and issued pursuant to the placement. The issue of the options is the subject of the placement options offer under this prospectus,” IEL said.
“In addition to the placement, the company is undertaking the SPP offer to eligible shareholders, to raise AUD2 000 000 to enable eligible shareholders to participate in the capital raising.”
IEL said the free options would be exercisable at $0,14 (US$0,10056547) each on or before 5pm (WST) on January 31, 2025.
The firm added that all of the shares issued upon exercise of the options would rank equally with the shares on issue at the date of the prospectus.
“The SPP offer is an offer to each eligible shareholder to subscribe for a maximum of
AUD30 000 (US$21 566,126) worth of new shares at an issue price of AUD0,10 per share, together with one SPP option for every two SPP shares subscribed for and issued. Fractional entitlements will be rounded down to the nearest whole number,” IEL said.
Under the SPP offer, the total number of shares issued will not equate to more than 30% of shares on issue at the issue date of the shares.
Further, the issue price of the SPP shares is equal to or greater than 80% of the volume-weighted average price (VWAP) of shares for the five days in which trading in the shares occurred before the date of the announcement of the SPP offer.
IEL is extending the SPP offer to shareholders who were registered at 5pm (WST) on December 24, 2021 (the record date) and whose registered address is in Australia or New Zealand whom the company calls “eligible shareholders”.
“Oversubscriptions up to a further AUD1 000 000 (US$719 121,14) may be accepted, at the discretion of the directors, under the SPP,” IEL said.
“All of the shares offered under the SPP offer will rank equally with the shares on issue at the date of this prospectus … The options offered under the SPP offer pursuant to this prospectus will be exercisable at AUD0,14 (US$0,10063125) each on or before 5pm (WST) January 31, 2025.
“All of the shares issued upon exercise of the options will rank equally with the shares on issue at the date of this Prospectus. The SPP offer is non-renounceable, which means that eligible shareholders may not transfer their rights to any securities offered under the SPP offer.”
According to the IEL, the price of the shares under the SPP offer represents a 13% discount to the closing price of Invictus shares prior to the placement and SPP announcement last December. It also represents a 14,1% discount to the 5-day VWAP prior to that date.
IEL has participated in several capital raising initiatives as it continues to lack enough funds to realise the potential of its Muzarabani Project, located in the Mashonaland Central province in Zimbabwe.
The project is believed to hold significant oil and gas reserves.