Comet Ridge raises A$40M placement to take full ownership of Mahalo gas project
What's the deal? Australian gas company Comet RidgeDealroom has a profile for this one. Try Dealroom → (ASX:COI) has secured firm commitments to raise $40 million through a two-tranche share placement.
The company will also offer existing shareholders a share purchase plan to raise up to a further $5 million on the same terms.
Both tranches will issue 390,243,902 new shares at $0.1025 each. Taylor Collison, Morgans Corporate, and Aitken Mount Capital Partners acted as joint lead managers.
Why now? The proceeds will settle Comet Ridge's acquisition of the remaining 42.86% of the Mahalo Gas Project from SantosDealroom has a profile for this one. Try Dealroom → QNT Pty Ltd.
That includes $18 million in cash consideration, $3.4 million in stamp duty, and $4 million in outstanding cash calls. The rest will fund the project toward a final investment decision and cover working capital.
"These funds will enable Comet Ridge to secure 100% ownership of a very large and strategic position in the East Coast gas market," said managing director Tor McCaul.
What could go wrong? Part of the raise hinges on shareholder approval. Tranche 1 raises about $30.6 million using existing placement capacity, but Tranche 2's $9.4 million still needs the green light.
Directors and management have committed $300,000 to that conditional tranche. Investors will also receive one free attaching option for every two securities, with a 15.0c strike price expiring June 30, 2028 — also subject to approval.
The market response was sharp: shares fell 25% to $0.097 on the day of the announcement.
The signal: Pegged by Dealroom as a breakout-stage energy player, Comet Ridge is using this raise to move from partial stakeholder to sole owner of a strategic east coast gas asset. The bet reflects a wider scramble among Australian developers to lock down supply as the country's East Coast market contends with a persistent gas shortfall.
Read more: Listcorp
