NuEnergy Gas has launched a partially underwritten, renounceable pro-rata entitlement offer to raise approximately $8.2 million.
Eligible shareholders can subscribe to eight new shares for every 29 shares held at an issue price of 2 cents per share, with the entitlement offer scheduled to close on Sept. 12.
The funds raised will be directed toward several company initiatives, including the early gas sales initiative, working capital, and exploration activities.
The offer is partially underwritten by Globaltec Energy Resources to the value of $5.3 million.
The arrangement ensures that NuEnergy will raise the required funds to support its commercial endeavours.
"The entitlement offer provides an opportunity for existing eligible shareholders to continue participating in the growth of the company, commencing with the company’s early gas sales initiative," stated Kong Kok Keong, non-executive chairman of NuEnergy Gas.
Among recent milestones, NuEnergy announced the signing of a heads of agreement with PT Perusahaan Gas Negara for the sale and purchase of coal bed methane produced from the company's Tanjung Enim prospect.
The heads of agreement outlines plans to commence gas sales by the end of 2025.
The offer price represents a 16.67% discount to the company's share price at the close of trading on Aug. 23.
NuEnergy Gas is an independent clean energy company primarily involved in the exploration, appraisal, and development of hydrocarbons with a primary focus on unconventional gas on coal seam gas, also known as coal bed methane.
At the time of reporting, NuEnergy Gas' share price was $0.024.