Sino G&E Raises $62M in Share Placement, to Fund China Gas Assets

Sino Gas & Energy Holdings Limited (Sino Gas or the Company) announced Thursday the completion of a capital raising with commitments received for a placement of 500 million shares at $0.1242 (AUD 0.16) per share to raise $62.08 million or AUD 80 million (Placement). The Placement, to sophisticated and institutional investors, was strongly supported by existing shareholders and saw the introduction of new institutional investors to the Company’s register and was significantly oversubscribed.

The Placement price of $0.1242 (AUD 0.16) per share represents a 11.1 percent discount to the last traded price Monday April 20 ($0.1397 or AUD 0.18) and 10.7 percent discount to 5 day VWAP on Monday April 20 ($0.1389 or AUD 0.179).

Proceeds from the Placement will be used to fund the Company’s expenditure requirements materially towards Overall Development Plan (ODP) for its China projects including the aggressive build out of production through drilling, and adding new central gathering stations, and continued exploration activity. The proceeds will also provide additional working capital, the flexibility to repay debt, and a position of financial strength for the Company in its commercial dealings as well as general corporate purposes.

Commenting on the Placement, Managing Director Glenn Corrie said: “Sino Gas has made very good progress recently to significantly increase the reserves base and bring our assets into commercial production. The proceeds from this raise will build on this by funding the business materially towards ODP and placing us in a strengthened operational and financial position. The Board and I would like to thank existing shareholders for their support of the company and also welcome new investors in Australia and internationally onto our register. We would also like to encourage eligible shareholders to participate via the SPP.”

Euroz Securities Limited and RBC Capital Markets acted as Joint Lead Managers to the Placement.

Details of the Placement

The Placement consists of 500 million new shares to be issued at a price of $0.1242 (AUD 0.16) per share to raise total funds of $62.08 million (AUD 80 million) (before issue costs). The shares will be issued in two tranches:

  • An unconditional placement of approximately 202 million shares to raise approximately $24.82 million (AUD 32 million) under the Company’s 15 percent placement capacity
  • A conditional placement of approximately 298 million shares (Conditional Shares) to raise approximately $37.23 million (AUD 48 million), subject to shareholder approval at an Extraordinary General Meeting (EGM) of Sino Gas shareholders, expected to be held June 4

New shares issued under the Placement will rank equally with existing shares on issue. Additional information in relation to the Placement can be found in the Investor Presentation released separately to the ASX April 23.


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