Helium One (LON: HE1) shares opened lower Wednesday after the company said it has increased its fundraise to around £9.9 million (approximately $12.3 million).
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
The company made the decision to raise the fundraise after significant investor demand.
On Tuesday, The London-listed helium-exploration company said it was aiming to raise £7 million via a discounted placing and subscription, with the proceeds used for a targeted single well exploration drilling programme of the Tai prospect in the Rukwa Basin, Tanzania.
Top Broker Recommendation
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- Admiral Markets More than 4500 stocks & over 200 ETFs available to invest in – Read our Review
- Hargreaves Lansdown The company's website is easily understandable and accessible to a wide range of customers – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
- IG Top-tier regulation – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The issue price was 5p per share, representing a discount of 26% to Helium One's closing mid-market price on December 12.
Announcing the initial placing, Helium One's Chief Executive David Minchin said the company is “poised for growth” as it prepares to commence Phase II exploration drilling at Tai.
“Capital raised through the proposed fundraising will allow the company to progress its Phase II exploration drilling. A discovery made at Tai will help to unlock the value of our entire portfolio and help grow the company into a strategic player in developing a new supply in this high-value, high-demand, high-tech commodity,” Minchin added.
Helium One said Wednesday that the additional funds raised will provide the company with “greater working capital flexibility during and after the proposed drilling program in 1Q 2023.”
HE1 shares are down 11.8% at the time of writing.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.