ADX Energy Ltd (ASX:ADX) announced it had strong demand during its recent share purchase plan (SPP), attracting $1.578 million from shares issued at $0.10, substantially exceeding the Company’s funding target of $1 million and propelling advancements of its Giant Welchau Gas Prospect, which recently received environmental clearance to allow for the commencement of drilling operations.
$1.578M Share Purchase Plan
The successful SPP was made available to eligible shareholders, who were given the opportunity to subscribe to new shares up to a maximum value of $30,000 per shareholder, at an issue price of $0.10.
The SPP also offered shareholders an Option, with one free attaching unlisted option being offered for every two shares issued under the SPP, at an exercised price of $0.16, expiring on the 31 December 2024.
ADX Energy reports that due to the strong demand from shareholders, all valid applications will be accepted in full.
With funding efforts being met with strong shareholder support, the funding target of $1 million was easily surpassed.
The Company has outlined that the additional funds garnered from the SPP will be strategically employed to advance the Giant Welchau Gas Prospect, which was given the environmental greenlight to kickstart drilling operations.
ADX has commenced well site construction and expects to commence drilling in late January 2024.
The SPP comes hot on the heels of the Company’s recent placement to sophisticated investors which raised $4.8 million.
ADX has outlined the SPP funds, in culmination with the placement funds, will be used to fund the Company’s activities including ADX’s increased economic interest in the recently completed Anshof-2 appraisal well, the installation of permanent production facilities at Anshof to enable increased production, in addition to funding ADX’s share of the Welchau-1 gas exploration well to be drilled in the first quarter of next year.
ADX Energy’s Executive Chairman Ian Tchacos commented on the Share Purchase Plan.
“The Board of ADX are pleased with the strong support from our Shareholders,” he said.
“This issue together with the recent placement, has raised $6.378 million which demonstrates shareholder support for ADX’ investment proposition and the potential of our upcoming drilling programs.”
ADX Energy’s Australian Stock Exchange-listed share price has risen 1.06% and is currently trading at $0.095 (8.45am UTC+ 8 hours).