As the clean energy revolution powers ahead, Lion Energy (ASX: LIO) is shouldering into the space after receiving firm commitments to raise $2.8 million to pursue possible green hydrogen development on Seram Island in Indonesia.
The green hydrogen industry is growing across the globe with the Australian Government announcing only this week it was committing $275.5 million towards developing four hydrogen hubs across the country over five years.
This commitment builds on last year’s promise to invest $70.2 million to develop one hydrogen hub.
Peak Asset Management leads placement
To chase its new hydrogen strategy, Peak Asset Management is leading the placement, which has seen Lion receive firm commitments to raise $2.8 million.
Shares will be issued at $0.03 each and have a 1:1 option with a strike price of $0.04 and two-year expiry.
Lion executive chairman Tom Soulsby said the company was pleased to work with Peak to support its foray into the clean energy sector.
“Peak brings a wealth of experience in supporting companies with green hydrogen and renewable energy investment businesses in Australia,” Mr Soulsby added.
Directors put own cash behind hydrogen strategy
The capital raising will be completed in three tranches with the first equating to $993,000 and issued today.
The second tranche is via convertible notes to new and existing shareholders and amounting to $1.5 million.
Under the third tranche, Lion directors have committed $350,000 in total, with Mr Soulsby personally putting $100,000 of his cash to back the clean energy strategy.
Executive director Damien Servant will throw in $50,000 of his own money, with remaining directors Christ Newton ($50,000), Zane Lewis ($100,000) and Russell Brimage ($50,000) also participating.
Green hydrogen plans
Placement proceeds will be used to explore green hydrogen opportunities in Australia.
Proceeds will also facilitate the company’s evaluation of hydrogen production on Seram Island in Indonesia.
Unlike fossil fuels, hydrogen does not create carbon dioxide when burned and therefore does not contribute to global warming.