Green Rock Energy preparing placement and share issuance
Green Rock Energy, Perth Basin exploration permits (source: Green Rock Energy)
Alexander Richter
29 Jun 2010
Australian Green Rock Energy is preparing a placement of ordinary shares to raise AU$1.05million (US$920k), and the underwriting of a non-renounceable rights issue of shares to raise AU$1.6million (US$1.4m).
Australian Green Rock Energy (ASX:GRK) is partnering with stockbroker and advisory firm Cygnet Capital Pty Ltd to lead a placement of ordinary shares to raise AU$1.05million (US$920k), and the underwriting of a non-renounceable rights issue of shares to raise AU$1.6million (US$1.4m).
In the release by Green Rock, its Managing Director Richard Beresford said, “We selected Cygnet after talking with some of their other clients who valued highly their active and cooperative approach and their incentive to grow the Company by becoming significant shareholders themselves. We are looking forward to the partnership with Cygnet to develop and commercialise Green Rock’s geothermal business and also to explore new energy opportunities that can add strength and value for our shareholders.”.
The first tranche of the Placement (30 million shares) will be issued with the Company’s existing 15% capacity, and the second tranche (40 million shares) will be subject to a shareholder approval at a meeting to be convened.
Upon completion of the Placement it is intended that the Rights Issue will occur shortly afterwards with subscribers to the Placement entitled to participate in the Rights Issue. The timetable for the Right Issue including the record date for shareholder eligibility will be notified in a further announcement. In regard to these funding arrangements an Appendix 3B will be lodged at the same time as this announcement. New capital raised will be applied towards existing geothermal assets and reviewing new opportunities in the energy sector which draw on the existing skill set of the Board and Management.
Cygnet will be granted 25 million options exercisable at 2 cents per share, expring on 30 June 2013, on completion of the Rights Issue as part of their fee structure. All capital raised by Cygnet will attract a 6% capital raising fee.”
Source: Company announcement (pdf)
