Bounty Plans $4 Million Placement and $299K Convertible and Loan Notes

Recapitalisation Strategy Announced

Bounty Oil & Gas N.L. has outlined a significant recapitalisation proposal designed to stabilise its financial footing and support ongoing oil production and development activities in Queensland. Central to the plan is a 30-for-1 consolidation of existing shares, a move that will reduce the number of shares on issue and potentially improve market perception and liquidity.

The company also intends to raise up to $4 million through a placement of fully paid ordinary shares priced at $0.0051 each post-consolidation. This capital injection is expected to bolster working capital and reduce the company's current liabilities.

Convertible and Loan Notes Issued

Bounty has issued convertible notes with a face value of $39,000 and loan notes totaling $260,000. The convertible notes, unsecured and carrying a 10% interest rate, have been issued under the company’s existing placement capacity. The loan notes, secured by a general security agreement, also bear a 10% interest rate but require shareholder approval for conversion into equity.

Both note types include provisions for free attaching options upon conversion, offering noteholders potential upside participation in the company’s equity. If shareholder approval for these options is not granted, the entitlements will be cash settled based on a Black & Scholes valuation.

Debt Conversion and Shareholder Meeting

As part of the recapitalisation, Bounty plans to convert $200,000 owed to CQ Pastoral Pty Ltd into equity at the placement price, further reducing debt levels. The company will convene a general meeting by 31 May 2026 to seek shareholder approval for the consolidation, placement, loan note conversions, and related capital initiatives.

Additionally, Oakley Capital Pty Ltd is set to receive approximately 51.6 million shares and 216.4 million options as lead manager fees, reflecting their role in facilitating the capital raise.

Outlook and Strategic Context

Bounty is actively engaging with stakeholders in its Naccowlah Joint Venture to resolve outstanding cash calls, with discussions described as constructive. The company remains optimistic about a favourable commercial outcome while awaiting a Federal Court decision on the PEP 11 offshore exploration permit, a key asset in its portfolio.

Management is also evaluating new projects as part of the recapitalisation process, signalling a strategic push to enhance the company’s asset base and market positioning.