Global Energy (ASX:GEV) is raising $10m for its green hydrogen project. But investors aren’t impressed

Worried girl holds model of planet loking sad.

The Global Energy Ventures Ltd (ASX: GEV) share price has come out of a trading halt today. This follows an update in regards to its capital raising efforts from the energy solutions company.

However, the news has not been well received by investors. At the time of writing, Global Energy shares are down a sizeable 9.68% to 14 cents. For context, the All Ordinaries Index (ASX: XAO) is down 0.71% to 7,682 points.

Successful placement

In a statement to the ASX, Global Energy advised it has successfully completed its institutional placement.

The company received firm commitments from both new and existing institutional, sophisticated, and professional investors to raise $10 million (before costs).

The placement will see 80 million new ordinary shares issued at a price of 12.5 cents apiece. This represents a 24% discount on the last closing price on 8 November, and a 10.5% discount on the 15-day volume-weighted average price.

The funds acquired from the placement will be used to accelerate the development of the Tiwi green hydrogen project in the Northern Territory. This includes:

  • Tiwi green hydrogen project feasibility study;
  • Ongoing engineering and approvals for the pilot compressed hydrogen ship;
  • Administration costs; and
  • General working capital.

The newly created shares are expected to be allotted and issued on 17 November.

In addition to the placement, Global Energy will undertake a non-underwritten share purchase plan (SPP), raising another $2 million. The terms will be the same as offered in the institutional placement.

The SPP will open on 22 November, with settlement on 13 December.

Global Energy managing director and CEO Martin Carolan commented:

The company’s launch into the upstream green hydrogen production with the Tiwi green hydrogen project provides a unique investment opportunity as the company positions compression as a first mover advantage into the production, storage and transport of hydrogen.

The capital raising will accelerate the development of the Tiwi green hydrogen project while also supporting our ongoing engineering, approvals and commercialisation for our proprietary ship design.

Global Energy share price summary

Over the last 12 months, Global Energy shares have accelerated by around 50%. They are also up 75% year to date.

Global Energy presides a market capitalisation of roughly $70 million, with approximately 457.17 million shares on its registry.

The post Global Energy (ASX:GEV) is raising $10m for its green hydrogen project. But investors aren’t impressed appeared first on The Motley Fool Australia.

Should you invest $1,000 in Global Energy right now?

Before you consider Global Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Global Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3bYrH7Z

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s