Helios Energy (ASX:HE8) is raising up to AU$3.6 million via a placement and an entitlement offer, according to a Thursday filing with the Australian bourse.
The company said it received firm commitments to raise AU$1 million via the placement of roughly 142.9 million shares at an issue price of AU$0.007 apiece. This represents a 56% discount to the company's last closing price on March 10, per the filing.
The remaining AU$2.6 million is being raised under the entitlement offer. The oil and gas explorer said Non-Executive Director Mark Lochtenberg committed to take up his entitlements in full as well as subscribe for up to AU$100,000 worth of shares under the shortfall. Managing Director Philipp Kin and Non-Executive Director John Cathcart also pledged to subscribe for up to AU$50,000 each under the shortfall.
Funds will be used for licensing and permitting renewals, technical geological, geotechnical, well design, and planning reclamation works related to the company's Presidio acreage, the filing stated.
Helios Energy's shares plunged nearly 19% in recent Thursday trade.
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