Buru Energy (ASX:BRU) announced a two-tranche capital placement, aiming to raise total gross proceeds of approximately $5.3 million.
The capital raising initiative involves the issuance of 355 million new fully paid ordinary shares, structured to provide the company with immediate liquidity while ensuring long-term shareholder alignment.
The first phase of the placement, Tranche 1, is set to raise roughly $2.3 million through the issuance of 152 million shares.
The initial stage leverages the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A, allowing for a rapid infusion of capital.
The subsequent Tranche 2 seeks to raise an additional $3 million via 203 million shares; however, this portion remains contingent upon receiving formal shareholder approval at the company’s upcoming annual general meeting, scheduled for May 27.
To further incentivise participation, the placement includes an attractive "free attaching option" structure.
Investors will receive one option for every two new shares allocated, exercisable at $0.022 with a three-year expiry period from the date of issue.
Like the second tranche of shares, the issuance of these attaching options is subject to a shareholder vote at the AGM.
At the time of reporting, Buru Energy's share price was $0.017.