REG - 88 Energy Limited - Completion of Rights Issue Shortfall Placement

88 EnergyAnnouncement

30/08/2023 12:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230830:nRSd8342Ka&default-theme=true

RNS Number : 8342K  88 Energy Limited  30 August 2023

 

88 Energy Limited

 

Completion of Rights Issue Shortfall Placement

 

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to announce the completion of its Shortfall Offer Placement from the
non-renounceable rights issue (Rights Issue), at an issue price of
A$0.006/£0.0031 per Share.

The Rights Issue closed at 5:00pm AWST on 22 August 2023 with results from the
processing of valid applications announced on 29 August 2023, with the Company
issuing 553,070,348 New Shares to eligible shareholders under the Rights
Issue.

As a result of the strong inbound demand received from other investors during
the Rights Issue and subsequent Shortfall Offer process, the Company has
received firm commitments to place in full all of the New Shares not taken up
under the Rights Issue via the Shortfall Offer representing 1,457,716,470 New
Shares to be issued (Shortfall Offer Placement), of which 675,000,000 ordinary
shares will be issued under the Company's placement capacity pursuant to ASX
Listing Rules 7.1 and 782,716,470 ordinary shares under Listing Rules 7.1A.
Shares issued under the Shortfall Offer Placement include the Capital
Development Shares referred to below.

The proceeds of the Rights Issue and Shortfall Offer Placement of A$8.0
million / approx. £4.1 million (before costs), which 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.  The issue of A$4 million worth of Capital Development
Shares is expected to save the Company at least an equivalent amount in cash
costs on development wells for Project Longhorn production growth, so that the
value of the benefit to the Company from the Rights Issue and Shortfall
Placement totals A$12.0 million / approx. £6.4 million (before costs).

The Company has agreed to part fund its share of the first two new wells at
the recently acquired Bighorn Phase 2 acreage anticipated to cost US$3.0
million (net) in development capital, through the issuance of A$4.0 million
worth of 88 Energy shares as part of the Shortfall Offer Placement
(approximately 667 million shares at a deemed issue price equal to the offer
price of A$0.006 per share under the Rights Issue and the Shortfall Offer
Placement) to Lonestar I, LLC (Lonestar) (Capital Development Shares).

The Capital Development Shares will be held in escrow and subject to certain
restrictions and will only be released from escrow following approval by 88
Energy. Lonestar has the option to dispose of Capital Development Shares,
subject to certain restrictions under the agreement. Any proceeds from the
disposal of the Capital Development Shares received by Lonestar are to be held
on trust for 88 Energy until the associated invoices are received and approved
by 88 Energy for the capital development program. A reconciliation process and
payment of any outstanding amounts due (in cash) will occur prior to year-end
2023.

Total New Shares to be issued under the Shortfall Offer Placement represent
approximately 7% of all Shares of the Company publicly on offer. The New
Shares issued under the Rights Issue on 29 August 2023 commenced trading on
AIM on 30 August 2023. Settlement of the Shortfall Offer Placement on ASX is
scheduled for 7 September 2023, with normal trading on ASX commencing on 8
September 2023. Application will be made for admission of the Shortfall Offer
Placement Shares to trading on AIM ("Admission"), with Admission and
settlement expected to occur on 8 September 2023. All of the New Shares will
rank equally with existing 88 Energy shares on issue.

Euroz Hartleys Limited acted as lead Manager and bookrunner to the Shortfall
Offer Placement. Cenkos Securities Plc acted as nominated adviser and broker
to the Shortfall Offer Placement in the United Kingdom. Inyati Capital Pty Ltd
acted as co-manager to the Shortfall Offer Placement. Commission for the
Shortfall Offer Placement was 6% (plus GST) of total funds raised across Euroz
Hartleys Limited, Inyati Capital Pty Ltd and Cenkos Securities Plc.  This fee
does not apply to the Capital Development Shares.

Following the issue of the New Shares under the Rights offering and Shortfall
Placement, the Company will have 22,118,655,043 ordinary shares on issue, all
of which have voting rights. The figure of 22,118,655,043 ordinary shares may
be used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or change
their interest in, the Company.

 

This announcement has been authorised by the Board.

 

Media and Investor Relations:

 

88 Energy Ltd

Ashley Gilbert, Managing
Director

 

Tel: +61 8 9485 0990

Email:investor-relations@88energy.com

 

 

 

Fivemark Partners, Investor and Media
Relations                      Tel: +61 410 276 744

Michael Vaughan
 
                             Tel: +61 422 602 720

 

EurozHartleys Ltd

Dale
Bryan
Tel: + 61 8 9268 2829

 

Cenkos
Securities
Tel: + 44 131 220 6939

Neil McDonald / Derrick Lee

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IOEFLFILTSIIVIV