Pilot Energy (PGY) has successfully secured A$5.0 million (before costs) through a two-tranche placement of 500,000,000 new shares at A$0.010 per share. This issue price represents a significant 100% premium to the last closing price. The placement, which was oversubscribed, attracted strong interest from sophisticated, professional, and institutional investors. The funds will be strategically allocated, with approximately $4.5 million (67.2%) earmarked for Cliff Head Operations, $1.9 million (28.4%) for corporate costs and working capital, and $0.3 million (4.4%) for capital raising costs. These funds will be combined with existing working capital and funds raised via convertible notes, bringing the total available funds to $6.7 million.
The placement is also being supported by Pilot Energy’s Board, with directors collectively committing to subscribe for $455,000, pending shareholder approval at the upcoming Extraordinary General Meeting (EGM) on June 4, 2025. Each participant in the offer will receive an attaching listed option (ASX:PGYOA) with a strike price of $0.033 on a 1-for-1 basis, subject to shareholder approval at the EGM.
The company also disclosed that it has received a confidential, non-binding, indicative proposal from a foreign state-owned enterprise with an investment grade rating to acquire a meaningful minority interest in the Cliff Head Carbon Storage Project. Pilot believes the proposal is well advanced and could be finalised.
The company confirms that, following the successful completion of the placement, it is adequately capitalized and can meet its debts as and when they fall due. Settlement of Tranche 1 is expected on April 23, 2025, with allotment on April 24, 2025. Settlement of Tranche 2 is expected on June 5, 2025, following shareholder approval.
