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ADX Energy Successfully Raises $4.2M in Oversubscribed Placement

22 November 2023 11:27
ASX:ADX

ADX Energy (ASX:ADX) has received firm commitments from a combination of Australian, UK and European investors to participate in its oversubscribed $4.2 million capital raise, which will fund its ADX Austrian drilling and production development programs.

An Oversubscribed Placement

The Placement to sophisticated investors was well received by the market, resulting in the capital raise being oversubscribed by approximately 40 percent.

ADX confirms 42,000,000 shares were offered at a discounted price of $0.10 per share (ADX last closing price prior to placement was $0.115 per share).

The Placement included one free attaching unlisted option offered for every two placement shares, with a strike price of $0.16 per share, set to expire December 31 next year.

In conjunction with the Placement, the Company additionally offered a share purchase plan (SPP) to ADX Shareholders of up to $ 1 million, allowing registered shareholders to invest on same terms as the Placement.

The Placement Shares and Placement Options are anticipated to be issued on or about 28 November this year.

Use of the Funds

The Placement raised will be used to accelerate the following activities:

  • Funding of ADX’s increased economic interest in the recently commenced Anshof- 2 appraisal well
  • Installation of permanent production facilities at Anshof to enable increased production from the Anshof-3 and Anshof-2 wells
  • Funding towards ADX’s share of the Welchau exploration well to be drilled in quarter one next year
  • Additional working capital

Company Comments

ADX Energy’s Executive Chairman Ian Tchacos commented on the successful Placement.

“The Board of ADX is delighted by the strong support for the placement and welcome a number of new shareholders to the register, including several large European investors where there is a strong recognition of the importance of energy security and responsibly produced domestic production,” he said.

“While the Company is essentially self-funding from farmout transactions as well as existing oil and gas production in the Vienna basin and Upper Austria, this Placement and the SPP enable ADX to fund an increased share of expenditures resulting from the non-participation of Xstate Resources Limited in the drilling of the Anshof-2 appraisal well, the installation of the Anshof permanent processing facilities to increase field production rates and provide funding for the drilling of the Welchau prospect which, subject to an environmental permit, is expected to spud in January 2024.”

ADX’s Australian Stock Exchange-listed share price is currently trading at $0.98 (11:10am UTC+ 8 hours).

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