logo-loader
Tlou Energy Limited

Tlou Energy raises AU$1.2mln in premium share placing

It removes any perceived near-term financial pressure from the company, said CEO Tony Gilby

oil and gas operations
Tlou said it will now have ample time to consider funding options after upcoming well testing

Tlou Energy Limited (LON:TLOU) (ASX:TLOU) has raised AU$1.2mln, in a premium priced placing, to ease what was described as “near-term financial pressure”.

The company, in a statement, revealed that it will issue new shares to "Sophisticated" existing shareholders at a price of 10 Australian cents per share, a 5% premium to the ASX closing price on Friday.

"We welcome the confidence shown in the company by the two existing shareholders who participated in this strategic placement,” said Tony Gilby, Tlou chief executive.

READ: Tlou Energy builds on position in Botswana ahead of key results

“The additional capital also removes perceived near-term financial pressure from the company, as upon any successful gas flows and/or tender result we will not need to immediately raise capital. Rather, this allows the company ample time to assess the available financing options and to help position Tlou Energy as part of the solution to the looming regional power shortage,” he added.

The subscribing shareholders agreed to a voluntary 12-month escrow of the new shares, meaning they can’t be sold in the first year following the placing.

In a note to clients, analysts at ‘house’ broker Shore Capital pointed out: “Our last published fair value estimate for Tlou stands at approximately 25p/share, and we envisage only a minor adjustment to our valuation due to the minimal level of placing-related dilution (2.85% of the enlarged share capital)."

They added: “With an active work programme underway and strong progress being made with initial development operations at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

In mid-morning trading, share in Tlou Energy were 8.1% higher at 6.00p.

 -- Adds analyst comment, share price --

Quick facts: Tlou Energy Limited

Price: £0.05

Market: AIM
Market Cap: £21.27 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Tlou Energy Limited named herein, including the promotion by the Company of Tlou Energy Limited in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Further gas flow rate upgrades expected from Tlou Energy

Tlou Energy Limited (LON:TLOU) CEO Tony Gilbey is excited about the year ahead and answers investor queries via Proactive London . Speaking from Brisbane Australia, Gilbey tells Polly Middlehurst when commercial gas flow rates can be expected on their CBM projects in Botswana and what a...

3 weeks ago

2 min read