INVICTUS Energy has completed the raising of US$10 million from institutional investors, giving it enough resources to progress the Cabora Bassa project and dual-list on the Victoria Falls Stock Exchange (VFEX), the company said yesterday.
The institutional placement was managed by Mangwana Capital.
Mutapa Investment Fund has underwritten US$5 million of the placement, demonstrating long-term support for the project on behalf of government, as well as a number of other strategic investors.
“This strategic capital raise and support we have received from institutional investors, particularly the Mutapa Investment Fund, is testament to the quality of the Cabora Bassa project,” Invictus managing director Scott Macmillan said in a statement.
“These funds will be used to progress our dual strategy of early monetisation as well as further development as we look to expand our resource base through further discovery and transition into a development phase.
“This placement and associated dual listing of Invictus on the VFEX will also enable greater and ongoing domestic investment in the company and our project.”
The company said the strategic investment was historic for Invictus and investors in Zimbabwe, who will now have the ability to hold and trade securities in the company through a dual listing on the waterfall bourse.
The investment firms up a pathway to finalise the petroleum production sharing agreement (PPSA).
The PPSA is designed to ensure fair and equitable sharing of the project’s revenue between government, Invictus and its partners, fostering a mutually beneficial partnership that supports the project’s long-term success.
Funding through the placement will assist Invictus progress its near-term exploration and corporate strategies as the company transitions from explorer to developer.
Invictus offered to place US$10 million through the issuance of 151 515 152 shares at a share price of AU$0,10 at an AU$/US$ foreign currency exchange rate of US$0,66.
Under the placement, participants will receive an option to subscribe for one share for every four shares subscribed for, exercisable at AU$0,30 with a two-year option period.
Securities issued will facilitate a secondary listing on the VFEX through issuance of Zimbabwe Depository Receipts to support local liquidity and trading.
The official listing is slated for today.
The placement will be carried out in two tranches.Tranche one will comprise the issue of approximately 98,5 million new shares to raise US$6,5 million, with US$1,5 million placed immediately to be followed by a further US$5 million, expected to be finalised week commencing August 12, 2024.
The second tranche will comprise approximately 53 million new shares to raise US$3,5 million on the same terms as tranche one and shareholder approval would be sought at an extraordinary general meeting next month.
Invictus is an Australia-listed oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa.
