NH3 Raises $710,000 via 23.7M Shares, Converts $900K Notes to Fuel WAH2
NH3 Clean Energy has successfully raised $710,000 through a share placement, boosting funding for its WAH2 clean ammonia export project. This capital injection, alongside convertible note conversions, underscores progress toward the project's final investment decision.
- Raised $710,000 via placement of 23.7 million shares at $0.03 each
- Placement upsized from initial $600,000 target due to strong investor demand
- Directors subscribed for $51,499 worth of shares, showing internal confidence
- Convertible notes worth $900,000 converted into nearly 50 million shares
- Funds earmarked for FEED workstreams, commercial negotiations, and stakeholder engagement
Capital Raise Upsizes Amid Growing Interest
NH3 Clean Energy Limited has announced a successful capital raising effort, securing $710,000 through the placement of 23,666,667 fully paid ordinary shares priced at $0.03 each. This placement exceeded the company's initial target of $600,000, reflecting strong demand from both new sophisticated investors and existing shareholders. Notably, company directors demonstrated their confidence by subscribing to shares worth $51,499.
Convertible Notes Conversion Adds to Capital Base
In addition to the placement, NH3 Clean Energy is converting $900,000 worth of convertible notes issued in June 2024 into 49,867,397 fully paid shares. This conversion effectively removes debt from the company’s balance sheet, further strengthening its financial position as it advances the WAH2 Project.
Funding the Next Phase of WAH2
The proceeds from the placement and note conversion will be directed toward progressing the WAH2 Project, Australia's leading clean ammonia export initiative. Key uses include advancing front-end engineering design (FEED) workstreams, initiating commercial negotiations for ammonia offtake, supporting project funding strategies, and engaging with government and institutional stakeholders. These steps are critical as NH3 Clean Energy moves closer to a final investment decision (FID).
Market Confidence and Strategic Positioning
Chairman Charles Whitfield highlighted the significance of attracting new institutional investors, noting that the placement price represented a 1.35% discount to the one-month volume weighted average price but a 67% premium over the last placement price. This dynamic underscores the market’s growing confidence in NH3 Clean Energy’s strategy and progress. The company’s focus remains on efficient capital deployment to maximize value creation ahead of key project milestones.
Outlook and Next Steps
With the capital raise complete and convertible notes converted, NH3 Clean Energy is well-positioned to advance its WAH2 Project development. The upcoming shareholder meeting to approve director participation shares and further updates on FEED progress and commercial agreements will be closely watched by investors eager to gauge the project's trajectory in the burgeoning clean energy export sector.
Bottom Line?
NH3 Clean Energy’s latest funding round marks a pivotal step toward commercialising Australia’s clean ammonia export ambitions.
Questions in the middle?
- What are the detailed timelines for completing FEED and reaching the final investment decision?
- How will the director participation shares impact overall shareholder dilution and control?
- What progress is being made on securing commercial ammonia offtake agreements and project financing?
