4th Nov 2022 11:11
(Alliance News) - Tlou Energy Ltd on Friday said it raised AUD2 million, around GBP1.1 million, through a share placement.
Tlou is a Brisbane, Australia-based power project developer focused on sub-Saharan Africa, in particular Botswana and South Africa. Shares in the firm were up 11% at 1.50 pence on Friday morning in London.
Tlou raised the AUD2 million through a placing of 57.1 million shares at an issue price of AUD0.035. This price presents a 35% premium to its close in Sydney on Thursday of AUD0.026.
The funds will be used for the development of the Lesedi power project, including the construction of substations to connect it to the existing electricity grid in Botswana.
Chief Executive Anthony Gilby said: "We have been working to secure the next series of funding partners for the company for some time and we are delighted to have reached agreement with the first of these being Dr Ian Campbell who has invested at a premium to the prevailing share price. This is a significant endorsement of Tlou's Lesedi power project in Botswana."
The funds were raised through an unnamed entity controlled by Ian Campbell, who is described by the firm as a "high net worth investor based in Sydney".
Tlou added that Campbell has indicated to the firm that he will work with the company to secure an additional funding package designed to fast-track the goal of achieving 100 megawatts of power generation as soon as possible.
Last week, Tlou said the Australian Securities & Investments Commission had concluded its investigation into claims made by Tlou in reports it issued entitled 'Carbon Neutrality' and 'Clean Energy for Botswana and Beyond'.
Tlou paid AUD53,280 for these infringement notices but said it does not accept that it contravened any securities rules.
Tlou explained it agreed to pay the infringement notice to "bring this matter to an end and focus the company's resources on development of its power projects".
By Heather Rydings; [email protected]
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