Tlou Energy, the company with primary focus on generating cleaner power in Botswana and in the southern African region in general, using gas and solar power, announced its plans to take on an equity placement of £2.6 million (the “Placing”).
The Placing will be facilitated via an accelerated bookbuild process, which is set to launch instantly following this announcement with pre-set terms and conditions and a price of 3.5 pence
The Placing will be facilitated via an accelerated bookbuild process, which is set to launch instantly following this announcement with pre-set terms and conditions and a price of 3.5 pence.
The said placing shares will not be made available to the public. It is expected that the bookbuild will close latest by 6.00 p.m., 16 March 2021. Further information on the volume of Placing Shares and the estimated gross proceeds will be made known as soon as is logically appropriate after the Bookbuild closes. According to reports, the placing will not be underwritten and Shore Capital is acting as sole bookrunner.
The net proceeds of this placing will be merged with existing cash and applied by Tlou to the construction of a 66kV transmission line from the Company’s Lesedi project to the existing electricity grid at Serowe, Botswana. Funds will also be expended on field operating costs and ancillary equipment.
The Company seems set to commence work on the transmission plant immediately, as tenders have been awarded for the construction of both the overhead transmission lines and sub-stations. Likewise, route alignments, surveys and the environmental and social impact assessment for the line has already been completed.
“Funds will also be used to cover working capital requirements including general and administrative costs across the Company’s three stock exchange listings on ASX, AIM and BSE. The timing and execution of activities proposed to make use of the funds raised may be impacted by Covid-19 pandemic restrictions,” an official report stated.
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