Tlou Energy equity placement to raise P19 million

  • Launches a non-renounceable entitlement offer for a further P44 million




Tlou Energy Limited, a Botswana Stock Exchange listed company focused on delivering power in Botswana and Southern Africa through the development of coal bed methane projects has announced the completion of a £1.4 million (P19 million) placement of new ordinary shares.


The Company has, at the same time, also announced the launch of an entitlement offer for an aggregate of 54, 911, 938 new ordinary shares at a price of £0.0575 (A$0.10) to raise up to approximately £3.2 million (P44 million).


In its announcement, Tlou indicates that “eligible shareholders may subscribe for 1 fully paid ordinary share for each 6 fully paid ordinary shares held at 7.00 pm (AEDT) / 6.00 pm (BST) on 15 June 2018. The Placement comprises the issue of 24,752,582 new ordinary shares, representing 6 percent of the enlarged share capital, at an issue price of £0.0575 or A$0.10 per share to sophisticated and professional investors in Australia and the United Kingdom.”


It says the Placement Shares will rank equally with Tlou’s existing issued ordinary shares including the right to receive all dividends and other distributions declared, made or paid after their date of issue. The Placement price represents a discount of 26.8 percent to the closing mid-market price on AIM on 5 June 2018, being the latest practicable date prior to the date of this announcement.


The proceeds of the placement, of approximately $2.5 million (P25 million), will be received by 20 June 2018. “Application will be made for admission of the Placement Shares to trading on ASX and AIM, with admission to trading on AIM expected to occur at 8.00 a.m. on 20 June 2018 (London time) and ASX quotation on 20 June 2018. Following Admission of the Placement Shares, the Company’s total issued share capital will comprise 354,224,575 ordinary shares (each carrying one right to vote). The Company holds no shares in treasury. This figure of 354,224,575 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules. The Placement Shares will be issued within the Company’s existing Listing Rule 7.1 placement capacity and, as such, shareholder approval will not be required,” the Company explained.


It noted that the net proceeds of the Placement and the Entitlement Offer, along with existing cash, will mainly be applied towards drilling of production pods, core-hole drilling, regulatory approvals, and working capital.


The Company says it intends to drill the production pods in the second half of 2018, subject to the level of participation in the Entitlement Offer, with dewatering to be completed prior to production testing, installation and commissioning of power generation facilities planned for 2019. The proposed production pods, referred to as Dual Lateral Pods, consist of two lateral or horizontal wells that intersect a vertical well. They will be drilled in an area identified as an ideal location for initial project development, where quality seismic and core-hole data exists. The planned pods could provide sufficient gas for the first 2 MW of power generation from the Lesedi project.