The Helium One Global Ltd (LON: HE1) share price fell 4.55% after announcing that it had raised £6.8 million (approx. US$8.5 million) via a placing, subscription and retail offer announced yesterday. The decline in its share price was expected after the company priced the new shares issued at a 10.4% discount.
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However, we can see that the 4.55% decline was half the discount offered to the participating shareholders, indicating that investor sentiment towards the company is still quite positive. The company raised £6.26 million (approximately US$7.86 million) by placing 104,383,335 new Ordinary Shares.
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Helium One then raised £0.04 million (approximately US$0.05 million) via a Subscription of 616,665 new Ordinary Shares for a total of £6.3 million (approximately US$7.9 million). The company later raised £0.5 million (approximately US$0.6 million) from retail investors via the PrimaryBid platform by issuing 8,333,333 new Ordinary Shares at the Issue Price.
The fundraising comes when the company is just about to start drilling the Tai-C prospect and will help the company drill a further prospect immediately after drilling the Tai-C well. The next prospect for drilling will be the Itumbula well.
Investors are optimistic that the company shall strike significant helium reserves after the initial drilling campaign at Rukwa failed to yield any tangible drill targets for the company.
Lorna Blaisse, the Helium One CEO, commented: “We are delighted with the response that we have received during our oversubscribed Placing and Retail Offer and are pleased to have been able to include our existing investors. The funds raised now enable us to drill a further prospect immediately after the planned drill at Tai-C. Itumbula has always ranked highly in our portfolio, and to be able to drill it this side of the wet season offers an excellent opportunity to utilise personnel and equipment and make a significant cost saving in the long term. The next few months promise to be an incredibly exciting time for the Company as we commence spud this month and complete these two wells.”
Helium One share price.
The Helium One share price fell 4.55% to trade at 6.30p, from Wednesday’s closing price of 6.60p.
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