HyTerra Ltd (ASX: HYT), an emerging natural hydrogen and helium exploration and development company focused on discovering clean energy resources, has announced a pro-rata non-renounceable entitlement issue. The company aims to raise up to $7,004,373 through the offer of three new shares for every ten shares currently held by eligible shareholders. The new shares will be issued at an offer price of $0.014 each. This capital raising initiative, detailed in a prospectus dated 23 April 2026, will see approximately 500,312,338 new shares issued, subject to full subscription. The Record Date for determining entitlements is set for Wednesday, 29 April 2026, with the offer closing on Wednesday, 13 May 2026.
The funds raised from the entitlement issue are primarily earmarked for advancing HyTerra’s exploration and development activities. The largest portion, approximately $3.5 million (49.97%), will be allocated to drilling and testing programs, including a proposed flow testing program expected to commence in Q2 2026 and additional drilling in 2026. An additional $1 million (14.27%) is designated for leasing high-priority areas in the United States, in line with the company’s strategic plan. Furthermore, $500,000 will be used for the acquisition and assessment of geological and geophysical data, while $250,000 is allocated for new opportunities and $1,668,337 for working capital.
The entitlement issue will have implications for the company’s shareholder structure. Non-participating shareholders can expect their holdings to be diluted by approximately 23%. Fortescue, currently the largest shareholder with a relevant interest of about 38.62%, has the potential to increase its voting power up to 45% if only it takes up its full entitlement. However, the offer is designed to allow all eligible shareholders to participate on the same terms. Directors Russell Brimage and Benjamin Mee intend to participate partially and fully, respectively, while Avon McIntyre does not intend to take up his entitlement. The company notes that securities offered under the prospectus should be considered highly speculative.
