Firm Commitments Received of $40m to Fund Bouldercombe
Sydney, Feb 23, 2022 AEST (ABN Newswire) - Genex Power Limited (
ASX:GNX) is pleased to announce that it has today secured the final piece of the project financing package for the 50MW/100MWh Bouldercombe Battery Project (BBP or Project), through a capital raising of $40M. Following completion of the capital raising, Genex is positioned to proceed to financial close and commencement of construction of the BBP.
$40M INSTITUTIONAL PLACEMENT
Genex is pleased to confirm that it has successfully received binding commitments for an institutional placement to raise $40M (Placement), comprising the issuance of 266,666,667 new fully paid ordinary shares in Genex at $0.15 per share (Placement Price).
The Placement Price represents a 13.2% discount to the 5-day volume weighted average price (VWAP) of $0.173 on 18 February 2022 and an 11.8% discount to the closing price of Genex shares on 18 February 2022.
The Placement has been completed utilising the Company's existing placement capacity under ASX Listing Rule 7.1 (160,485,006 shares) and 7.1A (106,181,661 shares). All shares issued under the Placement will rank pari passu with the existing ordinary shares on issue.
The proceeds of the Placement, alongside the $35M debt facility with Infradebt Pty Ltd (Infradebt) (refer ASX Announcement dated 21 February 2022) will be applied towards the construction costs of the Project, repayment of an existing facility with the Clean Energy Finance Corporation (CEFC) and working capital. Further detail on the use of proceeds is provided in the table below.
Canaccord Genuity (Australia) Limited and Morgans Corporate Limited acted as Joint Lead Managers to the Placement and Euroz Hartleys Limited acted as Co-manager to the Placement.
LAUNCH OF $10M SHARE PURCHASE PLAN
In acknowledgement of the continued support of the Company's retail shareholders, Genex has resolved to undertake a Share Purchase Plan (SPP) to raise up to a maximum of $10M to allow eligible shareholders to participate in the capital raising on similar terms to those of institutional investors under the Placement. Genex reserves the right to scale back the SPP and raise less than $10M or to accept oversubscriptions above $10M in its discretion.
Existing eligible shareholders on the register as at the record date of 7.00 pm (AEDT) on Tuesday, 22 February 2022 (Record Date) will be able to subscribe for up to $30,000 of shares per shareholder at an SPP price equal to the lower of:
- the Placement Price; or
- the 5-day VWAP as at the date immediately before the issue of Shares under the SPP.
Further information in relation to the SPP, including SPP terms and conditions, will be outlined in the SPP offer booklet which will be dispatched to eligible shareholders on Thursday, 3 March 2022. Genex reserves the right to vary the SPP offer details and timetable without notice.
Commenting on today's announcement, James Harding, Genex Chief Executive Officer stated:
"I am delighted to announce today the final piece for the project financing of the Bouldercombe Battery Project, being the completion of a $40M institutional placement. I would like to thank our existing institutional shareholders for their continued support of Genex and our strategy as a leading diversified renewable energy generation and storage company, and to welcome new shareholders to the register.
We are also thankful for the ongoing support of our strong base of retail shareholders, who have helped the Company grow its portfolio since listing on the ASX in 2015. In acknowledgement of this support, I am pleased to confirm the launch of a $10M Share Purchase Plan to allow our retail shareholders to participate in the capital raising on similar terms to investors under the institutional placement.
The Bouldercombe Battery Project, which complements our fully funded Kidston Pumped Storage Hydro Project currently under construction, is an exciting addition to the Company's portfolio and will add significant upside exposure for shareholders when it commences operation in midCY2023."
To view the Indicative Timetable, please visit:
https://abnnewswire.net/lnk/61C94G53
To view the Capital Raising Presentation, please visit:
https://www.abnnewswire.net/lnk/7YO8W703
About Genex Power Ltd
Genex Power Limited (ASX:GNX) is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.
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