Comet Ridge Raises $40 Million Placement to Complete Mahalo Gas Acquisition

Placement Secures Full Mahalo Gas Hub Ownership

Comet Ridge Limited (ASX:COI) has successfully raised $40 million in a two-tranche placement aimed at completing its acquisition of the remaining 42.86% stake in the Mahalo Gas Project from Santos QNT Pty Ltd. The capital raise is a pivotal step for the company as it moves to consolidate 100% ownership of the Mahalo Gas Hub, a strategic position in Queensland’s east coast gas market.

The placement comprises an unconditional tranche raising approximately $30.6 million using the company’s existing placement capacity, and a conditional tranche of about $9.4 million, which requires shareholder approval expected in early August 2026. Directors and management have committed to participate in the conditional tranche with a $300,000 investment, signaling confidence in the deal and project prospects.

Share Purchase Plan Offers Existing Investors Participation

Alongside the placement, Comet Ridge intends to launch a non-underwritten share purchase plan (SPP) targeting up to $5 million from existing shareholders in Australia and New Zealand. Eligible shareholders can subscribe for shares at the same price as the placement, $0.1025 per share, which represents a 21.2% discount to the last closing price of $0.13 on 19 June 2026. The SPP also includes free attaching options exercisable at 15 cents, expiring in June 2028, subject to shareholder approval.

The combined capital raising could see the company’s issued shares increase from around 1.2 billion to over 1.6 billion, depending on the SPP uptake. The new shares issued under the SPP will rank equally with existing shares and will not dilute placement capacity.

Funds Target Acquisition Costs and Project Development

The proceeds from the placement and SPP will primarily be used to settle the remaining cash consideration of $18 million for the Santos acquisition, along with associated stamp duty and rehabilitation bonds, and to cover joint venture cash calls. Additional funds will support the Mahalo Gas Project’s progression to final investment decision (FID), including remaining front-end engineering design (FEED) costs and preparations to optimise the entire Mahalo Gas Hub as a coordinated development.

Comet Ridge’s managing director, Tor McCaul, emphasised the strategic importance of this capital raise, noting it will enable the company to secure full ownership and maximise value for shareholders by developing the Mahalo Gas Hub as a single, integrated project.

Discounted Pricing and Option Incentives

The placement price of $0.1025 per share reflects a 21.2% discount to the last closing price and a similar discount to the 15-day volume weighted average price (VWAP). Investors participating in the placement and SPP will also receive one free attaching option for every two shares subscribed, with a strike price of 15 cents and expiry on 30 June 2028. These options require shareholder approval, which will be sought at the upcoming general meeting.

Settlement of the unconditional tranche is scheduled for 30 June 2026, with new shares expected to be allotted on 1 July. The conditional tranche and options await shareholder approval, with allotment anticipated by mid-August.