AUSTRALIAN firm Invictus Energy Limited (Invictus) will seek shareholder approval for a capital raise of AUD11,52 million (US$7,56 million) at its annual general meeting (AGM) on November 29, businessdigest can report.
The approval will enable Invictus to issue 10% of its listed shares on the Australian Securities Exchange to acquire new resources, assets and investments.
Invictus is exploring for gas and oil at its Cabora Bassa project in northeast Zimbabwe's Muzarabani district, Mashonaland Central Province.
In December 2023, the firm announced a gas discovery, followed by another potential oil one of 184 million barrels in September this year
“This resolution seeks shareholder approval by way of special resolution for the company to have the additional 10% placement capacity provided for in Listing Rule 7.1A to issue equity securities without shareholder approval,” Invictus said in a message to shareholders.
“Broadly speaking, and subject to a number of exceptions, Listing Rule 7,1 limits the amount of equity securities that a listed company can issue without shareholder approval over any 12-month period to 15% of fully paid ordinary shares. Under Listing Rule 7,1A, Invictus may increase this limit by 10% to 25% with shareholder approval.”
Invictus intends to use funds raised for acquiring new resources, assets and investments, exploration expenditure on current assets or projects, feasibility studies and project administration, and business development and working capital.
The issuance of 10% of listed shares would result in approximately 151 644 223 shares being issued.
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To pass the resolution, at least 75% of votes cast by eligible shareholders must support it.
“If this resolution is not passed, the company will remain subject to the 15% limit on issuing equity securities without shareholder approval,” Invictus warned.
Shareholders were also cautioned about potential risks, including a lower market price for shares on the issue date.
Invictus previously obtained approval under Listing Rule 7.1A at its 2023 AGM, issuing 115 384 000 shares (6,72% of total diluted equity securities) and raising AUD15 million (US$9,85 million) for the Mukuyu-2 exploration campaign.
