Comet Ridge Completes $40.9 Million Raise to Finalise Mahalo Acquisition
Comet Ridge has completed a $40.9 million capital raise combining a Share Purchase Plan and a two-tranche placement to fund full acquisition and development of its Mahalo Gas Project.
- Share Purchase Plan raises $875,750 at $0.1025 per share
- Total capital raised reaches $40.9 million before costs
- Tranche 2 funding and option issuance subject to shareholder approval
- Funds earmarked for Mahalo Gas Project acquisition and development
- Unlisted free attaching options offered with 15c strike price
Capital Raise Completes Mahalo Acquisition Funding
Comet Ridge Limited (ASX:COI) has successfully closed its Share Purchase Plan (SPP), raising $875,750 at an issue price of 10.25 cents per share, matching the price set in a recent institutional placement. This brings the total funds raised, including a two-tranche placement announced in June, to $40.875 million before costs. The first tranche of approximately $30.6 million has already been received, while the second tranche of about $9.4 million awaits shareholder approval at the upcoming General Meeting on 6 August 2026.
Funding Directed at Mahalo Gas Project Finalisation
The capital raised is earmarked primarily to settle transaction costs related to acquiring the remaining 42.86% stake in the Mahalo Gas Project from Santos QNT Pty Ltd. Beyond acquisition costs, proceeds will also finance the project’s progression to Final Investment Decision (FID) and cover general working capital needs. The Mahalo Gas Hub, Comet Ridge’s flagship asset near Gladstone, is positioned to supply low-cost, low-CO2 natural gas to the east coast Australian market, a region facing supply constraints and rising demand.
Shareholders Offered Free Attaching Options
As part of the offer, participants in both the placement and the SPP are entitled to receive one unlisted free attaching option for every two securities allotted. These options carry a strike price of 15 cents and expire on 30 June 2028. However, issuance of these options remains subject to shareholder approval at the General Meeting. The company is set to issue 8,543,861 new shares from the SPP, which will commence trading on 31 July 2026.
Strategic Implications for Comet Ridge’s Growth
Securing full ownership and advancing the Mahalo Gas Project marks a critical step in Comet Ridge’s strategy to become a meaningful gas supplier on the east coast. The project’s proximity to Gladstone and its low CO2 gas reserves add to its appeal amid growing interest in cleaner energy sources. The company’s broader portfolio, including exploration assets in Queensland and New South Wales, could provide additional upside as it progresses development milestones.
Bottom Line?
Shareholder approval on tranche two funding and option issuance will be pivotal for Comet Ridge’s next phase of Mahalo development.
Questions in the middle?
- Will shareholder approval for tranche two and options be secured at the 6 August meeting?
- How will the additional capital impact the timeline to Final Investment Decision for Mahalo?
- What market conditions could influence Comet Ridge’s ability to commercialise Mahalo gas reserves?
