Frontier Energy executive chair Jamie Cullen says the company’s $110 million capital raise is a pivotal achievement for the company.
Frontier Energy executive chair Jamie Cullen says the company’s $110 million capital raise is a pivotal achievement for the company.
Perth-based Frontier announced the tier one investor-focused conditional placement on Thursday, with proceeds allocated towards funding stage one of its Waroona solar battery project.
Funds will also be put towards stage two expansion activities.
Frontier said its stage one capital estimate cost was earmarked at around $310 million pre-contingency and $326.9 million with contingency.
Under the non-underwritten placement, which is subject to both shareholder approval and senior debt financing being secured at Waroona, the company said it would issue 550 million new fully paid ordinary shares at an offer price of 20 cents per share.
This price represents a 23.1 per cent discount to the company's final closing price of 26 cents prior to entering its trading halt on June 1.
Canaccord Genuity was appointed lead manager to the placement, while Yelverton Capital and CPS Capital Group were appointed co-managers.
“Together with our already strong support from existing investors, the appetite from new investors highlights both the quality of our stage one project, and the pipeline for future development at Waroona to create a major renewable energy precinct in the South West of WA.”
Last month, Frontier confirmed that Waroona had been selected for a tender stemming from the federal government’s capacity investment scheme – meaning the project essentially has a minimum level of assured revenue through to 2042.
Mr Cullen – former boss of Pacific Energy – was appointed executive chair on February 24 and said Waroona was a leading project which would drive the transition from coal to renewable-based energy.
Frontier closed trade on Thursday down 13 per cent to 22.5 cents.
