Invictus Energy to lodge supplementary share purchase plan
Invictus Energy Limited will today lodge a supplementary Share Purchase Plan (SPP) prospectus after the board exercised its discretion to increase the size of the SPP to accommodate the oversubscriptions in recognition of the long-term support of its retail investors.
The SPP offer announced on April 6, 2023 has closed oversubscribed, with valid applications received from eligible shareholders amounting to $12,7 million.
Invictus Energy Limited is an independent oil and gas exploration company focused on high-impact energy resources in sub-Saharan Africa.
Its asset portfolio consists of a highly prospective 360 000 hectares within the Cabora Bassa Basin in Zimbabwe.
In an update to shareholders, the mining entity said, due to the overwhelming support received by shareholders, the board has exercised its discretion to increase the size of the SPP to accommodate the oversubscriptions in recognition of the long-term support of its retail investors
Managing director, Mr Scott Macmillan, said: “I am pleased by the overwhelming support we have received from shareholders for the SPP, and I am delighted that we have been able to accept oversubscriptions.
“The funding raised in the SPP, combined with the recently completed institutional placement, puts Invictus in a strong position as we enter our next phase of exploration and appraisal in the Cabora Bassa Basin.
“The funds will help support the drilling of the upcoming Mukuyu-2 appraisal well, which will build on the success of the play opening Mukuyu-1/ST1 exploration well.”
As a result of accepting the oversubscriptions and the requirement to lodge a SPP supplementary prospectus, the allotment of shares will now take place June 2 (today).
The mining house said all SPP applicants receive attaching options on a one-for-two basis, with an exercise price of $0.20 and expiry of 7 June 2026 (subject to the receipt of the approval of shareholders at the general meeting scheduled for June 7, 2023).
The successful close of the SPP follows the recent $10 million private placement, as announced in the ASX release on April 6, 2023 and carried out on the same terms as the SPP.
“This means a total of $22,7 million has now been raised, comprising $10 million via the placement and $12,7 million via the SPP,” said the company.
Recently, the firm confirmed the presence of light oil, gas-condensate, and helium gas in commercial concentrations from its Mukuyu-1 mud gas compositional analysis.
Invictus has indicated that the country could be sitting on more than 5,5 billion barrels of oil. A barrel of oil equivalent (Boe) is a term used to summarise the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil.
In a recent shareholder update, Invictus noted that the placement was strongly supported by new and existing institutional and sophisticated shareholders, and was strategically cornered by existing investor Mangwana Capital, local Zimbabwean partners, and the board of directors who in aggregate contributed $1,3m, which will be issued subject to shareholder approval at a shareholder meeting.
Under the placement, Invictus will issue 83,333,333 new fully paid ordinary shares at an issue price of $0,12 per new share, representing a 20 percent discount to the last traded price of IVZ shares on April 3, 2023.
In 2020, the Government classified the Muzarabani project as one of the priority development projects, which can provide a significant economic benefit to the economy in pursuit of an upper middle-income economy by 2030.
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