AIM and ASX listed Tlou Energy said it has successfully completed its latest oversubscribed equity placement that raised funds towards the on-going production testing at Selemo. The placement that raised A$3 million comprises the issue of 31,578,947 new shares (representing 15.4% of existing shares on issue) at an issue price of A$0.095 or £0.055 per share to sophisticated and professional investors in Australia and the United Kingdom.
Tlou said the net proceeds of the placement, along with existing cash, will be applied to the on-going production testing at Selemo, achieving an initial independent reserves certification, completing environmental and mining licence approvals and working capital for its Lesedi CBM Project, which is the most advanced CBM project in Botswana.
According to the company, the placement price represents a discount range of 9% – 19% to the 20 day volume weighted average price for Tlou’s shares traded on the ASX and AIM markets and was a result of discussions over several months with IK Botswana Investments Pty Ltd, an Australian private company associated with IK Holdings Ltd, which is a party (along with General Electric International Inc.) to Tlou’s recently announced Co-Operation Agreement.
As part of the placement, IKBI has agreed to subscribe for 7,115,000 new shares which represents 3.0% of the fully diluted shares following completion of the Placement. The Placement shares will be issued within Tlou’s existing placement capacity and as such, shareholder approval will not be required.
Settlement of the Placement shares is expected to occur on 6 September 2016, with allotment on 7 September 2016. Application will be made for the admission of the Placement shares to trading on ASX and AIM. It is expected that AIM Admission will occur at 8:00 a.m. on 5 September 2016.
“This Placement along with the recently announced Co-operation Agreement with General Electric International Inc. and IK Holdings Ltd provides significant momentum for Tlou to progress the production testing at Selemo, with the objective of achieving initial reserves certification at Lesedi and the first gas to power project in Botswana,” Tlou’s Acting Managing Director, Gabaake Gabaake said.
“We were very pleased with the investment by IKBI and the continued support from our institutional and sophisticated shareholders in Australia and the UK”.
The Placement was managed by Brandon Hill Capital Limited and Optiva Securities Limited in the United Kingdom and Integra Advisory Partners Pty Ltd in Australia. Following Admission, the total number of voting rights of the Company’s ordinary shares will be 237,198,239. This figure of 237,198,239 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.