Boss Energy’s (ASX:BOE) recently launched share purchase plan (SPP) has been oversubscribed nearly 3 times over, with eligible shareholders applying for $29.6 million worth of new shares.
For reference, Boss aimed to raise $10 million from the SPP to complement a $205 million single-tranche placement to institutional, professional, and sophisticated investors.
Given the $19.6 million worth of oversubscriptions, Boss’ board has made the call to increase the size of the SPP to $15 million. Of course, this still leaves nearly $15 million in oversubscriptions, meaning the company will need to scale back allocations.
Boss Managing Director Duncan Craib says the company has been humbled by the ‘extraordinary show of shareholder support’ for the SPP.
“The number and value of applications is a strong endorsement of our growth strategy for Boss becoming a near-term multi-mine uranium producer in the tier-one jurisdictions of Australia and the US.
We move into 2024 in an exceptional position, with a robust balance sheet and both Honeymoon and Alta Mesa uranium projects continuing on time and on budget for 1H 2024 production, with significant potential to grow their existing resources.”
“The number and value of applications is a strong endorsement of our growth strategy for Boss becoming a near-term multi-mine uranium producer in the tier-one jurisdictions of Australia and the US”
Under the SPP, eligible Boss shareholders were offered new shares at $3.95 per share — the same price as shares issued under the $205 million placement.
On 7 December 2023, when the capital raise was announced, Boss said it would use the funds from the placement and SPP for the restart of the Alta Mesa project, exploration activities and working capital, an enCore equity investment, and expenditure related to Prompt Fission Neutron technology, as well as production and resource growth initiatives for its Honeymoon Project.
The company says it will put the extra $5 million from the oversubscribed SPP towards ‘growth opportunities’.
The new SPP shares are expected to be issued on 4 January 2024 and commence trading on 8 January.
Write to Joshua Smith at Mining.com.au
Images: Boss Energy
