Boss Energy concludes oversubscribed share purchase plan

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Image credit: Boss Energy

Australian uranium company Boss Energy has announced the completion of an oversubscribed share purchase plan (SPP) with $29.6 million of applications. 

In an ASX announcement, Boss said the SPP complemented its recently announced single-tranche placement to institutional, professional, and sophisticated investors to raise $205 million at an issue price of $3.95 per share. 

The oversubscribed SPP, which initially targeted $10.0 million, concluded on 29 December 2023. 

The company’s board exercised its discretion under the terms of the SPP to increase the offer size by $5 million to $15 million following strong shareholder support and to minimise the dilution of retail shareholders. 

The additional funds will allocated to growth opportunities, Boss said in its announcement. 

Meanwhile, given the value of subscriptions, scalebacks of allocations have still been required and this has been done based on the number of shares held. 

“The number and value of applications is a strong endorsement of our growth strategy for Boss becoming a near term multi-mine uranium producer in the tier 1 jurisdictions of Australia and the US,” said Duncan Craib, managing director at Boss Energy. 

“We move into 2024 in an exceptional position, with a robust balance sheet and both Honeymoon and Alta Mesa uranium projects continuing on time and on budget for 1H 2024 production, with significant potential to grow their existing resources.” 

The SPP shares are expected to be issued today, 4 January, and commence trading on ASX on Monday, 8 January. 

A total of 3,797,675 new fully paid ordinary shares will be issued, representing 0.9 per cent of Boss’ ordinary shares on issue prior to the SPP.