Neon Energy has received binding commitments from institutional and sophisticated investors for a private placement of new ordinary shares at an issue price of $0.30 per share; thereby raising approx. $30 million.
The placement is priced at an 11.8% discount to the company's last closing price of $0.34 per share. The proceeds will be used to fund oil and gas production, appraisal, exploration and strategic initiatives in Calif. and Southeast Asia.
The capital raising initially targeted a placement of $20 million under the company's 15% capacity pursuant to ASX Listing Rule 7.1, and was heavily oversubscribed with applications totaling some $60 million. As a result, the company increased the placement to $30 million in order to provide flexibility to pursue various strategic initiatives.
The placement was jointly managed by Bell Potter Securities Ltd. and Canaccord Genuity (Australia) Ltd., and will be made in two tranches.
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