Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Vulcan Energy Resources (VUL) successfully raises $200 million via an underwritten share placement
  • Roughly 14.8 million new fully paid ordinary shares were issued to institutional investors at $13.50 each
  • The company will also be undertaking a share purchase plan to raise up to $20 million, with shares to be priced the same as the placement
  • Vulcan will use the money to expand project development, refurbish exploration equipment and upgrade existing infrastructure
  • Shares in Vulcan are down 6.10 per cent and are trading at $14.93 at 12:03 pm AEST

Vulcan Energy Resources (VUL) has successfully raised $200 million via an underwritten share placement.

The energy company entered a trading halt on September 14, stating it would be looking to raise up to $200 million to expand its renewable energy and lithium development strategy.

Roughly 14.8 million new fully paid ordinary shares were issued to institutional investors at $13.50 apiece.

This price represents a 15.1 per cent discount to Vulcan’s closing price of $15.90 on September 13 and an 8.7 per cent discount to the 10-day volume-weighted average price of $14.78.

Shares are expected to settle on September 21.

Subject to shareholder approval, Vulcan will issue up to $1 million in shares to company directors.

Share purchase plan

Vulcan will also be undertaking a share purchase plan to raise up to a further $20 million.

Eligible shareholders will be able to subscribe for shares worth up to $30,000 which will be priced the same as the placement, at $13.50 apiece.

Vulcan has the right to scale back applications or accept oversubscriptions which may result in more or less than $20 million being raised.

The plan will open on September 24, close on October 13 and shares will be allocated on October 18.

Vulcan will use the money from both the placement and share purchase plan to expand project development, refurbish exploration equipment and upgrade existing infrastructure.

CEO and Managing Director Francis Wedin gave more insight into how money will be used.

“We are now well positioned to pursue the targeted acquisition and upgrade of existing brownfield energy and brine infrastructure, to de-risk and grow our development plans, as well as to increase our production pipeline from our existing license areas,” Dr Wedin said.

“This also allows us to complete the targeted acquisition and refurbishment of exploration equipment which will assist with executing on our project development in a timely manner.”

Shares in Vulcan were down 6.10 per cent and were trading at $14.93 at 12:03 pm AEST.

VUL by the numbers
More From The Market Herald

" TEK-Ocean (ASX:T3K) awarded artificial reef installation project

Recently listed company TEK-Ocean Group (T3K) has been awarded an artificial reef installation project by Subcon Blue Solutions.

" Alligator Energy (ASX:AGE) appoints new COO as drilling approval received for Samphire

Alligator Energy (AGE) has appointed a new Chief Operating Officer as approval is received to begin drilling at the Samphire Uranium project in

" A-Cap Energy (ASX:ACB) raises $17.4m in rights issue

Australian-based resources company A-Cap Energy (ACB) has raised $17.4 million via its heavily oversubscribed renounceable rights issue.
Strike Energy (ASX:STX) - Managing Director & CEO, Stuart Nicholls

" Strike Energy (ASX:STX) caps off busy Q1 with ASX-300 listing

Strike Energy (STX) capped off a busy start to the 2022 financial year by announcing it had been added to the ASX 300.