- The bid, however, underperformed with the majority of the funding, or A$5 million (about P45m), coming from the underwriter of the transaction.
- Tlou officials have revealed that the first electricity generated at the Lesedi project will be sold under a 10MW Power Purchase Agreement already signed with the Botswana Power Corporation.
Tlou Energy, the country’s most advanced Coal Bed Methane (CBM) developer, recently raised A$6.58 million (P57.1m) through an offer of additional equity to shareholders, an amount below the A$10.6 million (P92.6m) the firm was hoping to get. Known as an ‘entitlement offer’, Tlou had planned to use the proceeds from the fundraising to finance the company’s Lesedi Project, which is set to become the country’s first commercial CBM plant, opening up a new ecosystem of electricity generation in Botswana.
The bid, however, underperformed with the majority of the funding, or A$5 million (about P45m), coming from the underwriter of the transaction. In a week-long circular, Tlou officials said the offer only enjoyed 14.8% of its intended equity update. The officials stated, “Following the offer’s close, there is a shortfall of approximately A$9.06 million or approximately 259 million new shares not taken up by eligible shareholders.”
It is estimated that the Lesedi Gas-to-Power Project will cost up to P300 million, of which the largest pension fund in the country, the Botswana Public Officers Pension Fund, has already loaned P50 million to fund the construction of phase one of the project. The project is a two-phased natural gas extraction initiative that seeks to allow the nation to exploit the energy in the Lesedi CMB fields to create greater energy production independence for Botswana.
The closed round of funding to eligible shareholders was set to finance the drilling of six natural gas wells, the construction of the 100-kilometre transmission line to Serowe, the structure of substations, grid connections, and an electricity generator to produce two megawatts of electricity. The project is anticipated to ease the government’s dependence on imported energy, as this is the first coal project.
Tlou officials have revealed that the first electricity generated at the Lesedi project will be sold under a 10MW Power Purchase Agreement already signed with the Botswana Power Corporation. Once in total production, the 10MW of generation could provide annual revenue equivalent to approximately $10 million (P90m). Following the failure of shareholders to mop up offered shares, Tlou officials revealed that the underwriter would be allotted the total of the underwritten number of Offer Shares. “Following the issue of the shortfall shares, ILC Investment Pty Ltd will hold 357,142,856 Ordinary Shares representing approximately 34.85% of the company.”
Source:Mmegionline