REG - 88 Energy Limited - Completion of Rights Issue

88 EnergyAnnouncement

29/08/2023 07:00

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RNS Number : 6384K  88 Energy Limited  29 August 2023

 

88 Energy Limited

Completion of Rights Issue

Highlights

·   Completion of the non-renounceable rights issue of one (1) fully paid
ordinary share in the Company (New Share) for every ten (10) existing shares.
Issue price of A$0.006 per share (£0.0031).

·   Total committed proceeds raised from the Rights Issue of A$3.3 million
/ approx. £1.7 million (before costs).

·   Funds to be directed towards the Hickory-1 well flow test at Project
Phoenix, planning and permitting for a potential new well at Project Leonis,
development wells for Project Longhorn production growth and working capital.

88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) (88 Energy or the Company) is
pleased to announce the completion of its non-renounceable rights issue
(Rights Issue) of one (1) fully paid ordinary share in the Company (New Share)
for every ten (10) existing shares held, at an issue price of A$0.006/£0.0031
per Share, as announced on Monday 31 July 2023.

The Rights Issue closed at 5:00pm AWST on Tuesday 22 August 2023. Following
the processing of valid applications, the Company will issue 553,070,348 New
Shares to eligible shareholders under the Rights Issue, being 342,496,374 New
Shares for entitlements taken up by eligible shareholders and 210,573,974 New
Shares for additional subscriptions (above entitlement) received from eligible
shareholders.

The Company will now seek to place in full all of the 1,457,716,474 New Shares
not taken up under the Rights Issue via the Shortfall Offer under the
Company's placement capacity pursuant to ASX Listing Rules 7.1 and 7.1A, with
the ability to accept oversubscriptions at the Company's absolute discretion
subject to demand and available placement capacity under the ASX Listing Rules
(Placement).

The proceeds of the Rights Issue of A$3.3 million / approx. £1.7 million
(excluding the Shortfall Offer), 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,
development wells for Project Longhorn production growth.

 

 

Final allocations of New Shares under the Rights Issue and Shortfall Offer are
set out below:

 Total securities available under Rights Issue  2,010,786,822   $12,064,721
 Rights acceptances                               342,496,374   $ 2,049,025
 Additional subscriptions                         210,573,974   $ 1,259,856
 Total valid applications                         553,070,348   $ 3,308,881
 Securities available for Shortfall Offer       1,457,716,474   $ 8,746,299

Total New Shares to be issued under the Rights Issue and Shortfall Offer (if
fully subscribed) represent approximately 10% of all Shares of the Company
publicly on offer. The New Shares issued under the Rights Issue are expected
to trade on ASX and AIM on a normal settlement basis on 30 August 2023.

Settlement of the Shortfall Offer on ASX is scheduled for 7 September 2023,
with normal trading on ASX to commence on 8 September 2023. Settlement of the
Shortfall on AIM, and admission of the Shortfall Offer shares to trading on
AIM is 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 Rights Issue and received a cash
fee equivalent to 2% of the net proceeds raised under the Rights Issue
(excluding the Shortfall). Euroz Hartleys Limited will also act as lead
manager and bookrunner to the Shortfall Offer and the Placement. Cenkos
Securities Plc will act as nominated adviser and broker to the Shortfall Offer
and the Placement in the United Kingdom. Inyati Capital Pty Ltd will act as
co-manager to the Shortfall Offer and the Placement. Commission for the
Shortfall Offer and Placement will be 6% (plus GST) of total funds raised
across Euroz Hartleys Limited, Inyati Capital Pty Ltd and Cenkos Securities
Plc.

Application has been made to AIM for admission of the 553,070,348 New Shares
pursuant to the Rights Issue to trading AIM ("Admission"), with Admission of
these shares expected to occur on 30 August 2023. Following the issue of the
553,070,348 New Shares, the Company will have a total of 20,660,938,573
ordinary shares in issue, all of which have voting rights. The figure of
20,660,938,573 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
information will be updated when the Company announces the results of the
Shortfall Offer and the Placement.

Following the issue of the New Shares under the Rights Issue and Shortfall
Offer (if fully subscribed), the Company would have 22,118,655,047 ordinary
shares on issue (assuming no oversubscriptions such that no New Shares are
issued under the Placement), all of which would have voting rights.

Indicative Timetable

 Shortfall Offer and Placement Book Opens
                                                                                   Tuesday, 29 August 2023
 Shortfall Offer and Placement Book Closes                                        3pm AWST, Tuesday 29 August 2023
 Entitlements Issue shares only:

 Announcement of Results of Rights Issue (before noon Sydney time)

 Issue date and lodgement of Appendix 2A with ASX applying for quotation of the   Tuesday 29 August 2023
 securities (before noon Sydney time)

 Admission to trading on AIM of Entitlements Issue shares and dealings in the     Wednesday 30 August 2023
 Entitlements Issue shares commences 8:00 am (BST)
 Announcement of Results of Shortfall Offer and Placement                         On or before Thursday, 31 August 2023
 DvP Settlement on ASX for Shortfall Offer and Placement                          Thursday, 7 September 2023
 Allotment and Normal Trading of New Shares issued under the Shortfall Offer      Friday, 8 September 2023
 and Placement

 Admission to trading on AIM of Shortfall Offer and Placement shares and
 dealings in the Shortfall Offer and Placement shares commences 8:00 am (BST)
 a)   Note: Dates and times are indicative only and may change without
 notice. Euroz Hartleys reserves the right to close the book early. All
 references are to Australian Western Standard Time (AWST)

 

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

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