Source: Invictus seeks to raise US$10m… -Newsday Zimbabwe
ENERGY firm Invictus Energy Limited has announced a new A$15,2 million (US$10,06 million) capital raising initiative to fund drilling activities at its Mukuyu 2 oil and gas drill site located in north-eastern Zimbabwe.
This follows the successful raising of A$15 million (US$10,25 million) last December through the issuance of approximately 115 384 616 new shares on the Australian Stock Exchange at a price of A$0,13 per share that were fully paid for.
Now, in the new initiative, Invictus has launched an entitlement offer for up to A$15,2 million at A$0,13 per share.The drill site is part of the company’s Cabora Bassa project, where the firm is exploring for oil and gas, located in the Muzarabani district, Mashonaland Central province.
“The company is pleased to release details of its pro-rata non-renounceable entitlement offer following the recent placement for sophisticated and institutional investors in December 2023,” Invictus managing director Scott Macmillan said in a market update yesterday.
“Interest in the placement surpassed our initial target of A$10 million, extending the capital raise to more than A$15 million and the company committed to extend the same terms to all shareholders via this offer.
“Funds from the offer will be invested in important ongoing operational activity at our Cabora Bassa project including well testing at Mukuyu-2, where we declared two material gas discoveries in the Upper and Lower Angwa targets last month.”
He said the discoveries were transformational for the company, for the onshore oil and gas sector and southern African communities that continued to live in the grip of energy shortages.
“Preparation for 3D seismic surveying over Mukuyu-2 will be carried out as well as ordering long lead items, planning and preparation for a new high impact exploration well within our commanding 360 000ha (hectares) project area,” Macmillan continued.
The entitlement offer is a pro-rata non-renounceable entitlement issue of one share for every 12 shares held by shareholders registered at the record date at an issue price of A$0,13 per share.
This is being offered together with one listed option for every two shares subscribed for and issued.“Based on the capital structure of the company approximately 117 204 164 shares and 58 602 082 IVZOA Options may be issued under the offer to raise up to A$15 236 541 (before costs),” Invictus said.
“Each option entitles the holder to subscribe for one share upon exercise of the option at an exercise price of A$0,20 with an expiry date of June 7, 2026. No funds will be raised from the issue of the listed options.”
The closing date for the offer is February 19, with the quotation of securities issued under the offer to be done eight days later.“On completion of the offer, the board believes the company will have sufficient working capital to achieve its stated objectives. In the event the offer is not fully subscribed, operational objectives are likely to be modified, which may result in delay or substantial changes to the company’s future plans,” the firm said.
“In addition, it should be noted that the company’s budgets and forecasts will be subject to modification on an ongoing basis depending on the results achieved from its business activities and operations.”
Total shares and options on issue after the offer are expected to be 1 523 654 132 and 506 183 358, respectively.
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