NH3 Clean Energy has raised $4 million through a placement to institutional investors, aiming to fund critical front-end engineering design work for its WAH2 clean ammonia project.
- Raised $4 million via private placement of 36.36 million shares
- Funds targeted at FEED work for WAH2 clean ammonia project
- Placement shares issued at $0.110, a slight discount to last close
- New institutional investors brought onto register
- Placement managed by Curran & Co to minimize dilution
Capital Raise to Propel WAH2 Project
NH3 Clean Energy Limited (ASX, NH3) has successfully completed a $4 million capital raise through a private placement to new institutional investors. The company will issue over 36 million fully paid ordinary shares at $0.110 each, a price reflecting a modest discount to the recent closing price but a premium to the 15-day volume weighted average price. This injection of funds is earmarked primarily for advancing the front-end engineering design (FEED) phase of its WAH2 clean ammonia project.
Strategic Funding Amid Market Uncertainty
The placement comes at a pivotal moment as NH3 Clean Energy prepares for the final investment decision (FID) on the WAH2 project. By securing capital in a single tranche, the company aims to de-risk project execution amid volatile financial markets and accelerate its development timeline. Chairman Charles Whitfield highlighted the significance of attracting respected institutional investors, which not only strengthens the company’s balance sheet but also transforms its shareholder base.
Minimizing Dilution While Expanding Capacity
NH3 has been careful to price the placement to minimize dilution for existing shareholders, issuing shares under its existing ASX capacity rules. The funds will support internal resourcing for FEED workstreams and bolster efforts to secure additional customers, including exploring potential Build Own Operate (BOO) arrangements for parts of the project. This strategic approach suggests NH3 is positioning itself to meet upcoming development milestones and enhance project valuation.
Broader Company Context
Beyond WAH2, NH3 Clean Energy holds interests in several Western Australian resource projects, including the McIntosh Nickel-Copper-PGE and Halls Creek Gold and Base Metals projects. However, the company’s core focus remains on delivering decarbonised hydrogen via low-emissions ammonia, leveraging renewable energy to meet growing export and domestic demand.
With Curran & Co acting as sole lead manager and book runner; an institution familiar with NH3 through prior research coverage; the placement reflects confidence in the company’s strategic direction and project potential.
Bottom Line?
This capital raise sets the stage for NH3 Clean Energy’s next critical milestones, but investors will watch closely for progress on the WAH2 project’s final investment decision.
Questions in the middle?
- What is the expected timeline for the WAH2 project’s final investment decision?
- How will the new institutional investors influence NH3’s strategic direction?
- What are the risks if FEED work or customer acquisition targets are delayed?