Queensland’s ReNu Energy (ASX: RNE) has moved a step closer to realising its clean incubator strategy after a “heavily oversubscribed” share placement raised $1.46 million.
Peak Asset Management acted as corporate advisor and lead manager to the raising, which saw ReNu received firm commitments from professional and sophisticated investors for the issue of approximately 26 million new shares at $0.055 each.
Subscribers will receive one attaching option for every two shares received with a strike price of $0.07 per share and an expiry date of 31 December 2023, subject to shareholder approval at an upcoming general meeting.
The new shares are expected to be issued next week and will rank equally with existing shares.
Peak looked to identify new investors based on their alignment to ReNu’s clean energy incubator strategy and ReNu’s understanding of each investor’s relevant strategies, networks and risk profiles.
ReNu chief executive officer Greg Watson said the funds would allow the company to progress its evaluation of investment and acquisition opportunities in the clean energy sector, including finalising advanced discussions with an unlisted renewable energy technology company.
“We are very pleased that this placement has been strongly supported,” he said.
“The funds raised will be used to strengthen [our] financial position in anticipation of executing a strategic investment in the renewable energy sector.”
ReNu continues to move forward after a year of transition, change and renewed focus in 2020 marked by the $5.77 million sale of its solar operations; a cost structure re-set and board and management changes; the $500,000 divestment of its bioenergy assets; and the close-out of its historic geothermal wells.
The company is now seeking opportunities to create value by focusing on a clean energy incubator strategy; and taking strategic stakes in renewable energy projects including green hydrogen.
It plans to maximise its return on these opportunities by moving to a controlling interest, supporting a project through to an initial public offering process, or exiting a project via a sale.