LNGL Raises $21.34mn to Help with LNG Offtake Marketing
Australia-listed Americas-focused Liquefied Natural Gas Limited (LNGL) has raised A$28.2mn ($21.34mn) through a share placement agreement with IDG Energy Investment Group which it plans to use towards its LNG offtake marketing efforts, the company said June 4.
“It is a great pleasure to welcome IDG Energy Investment to LNGL’s investor group,” LNGL’s CEO Greg Vesey said.
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“Proceeds from this Share Placement provide additional liquidity to LNGL, and the investment from IDG Energy Investment demonstrates a high level of confidence in our Company, and particularly a strong confidence in the fully permitted, shovel ready Magnolia LNG project,” he said.
The share placement will raise the gross proceeds before costs through the issuance of 56,444,500 ordinary shares at A$0.50 per share, representing a 14.1% premium to the volume weighted average price of LNGL shares on the Australian Stock Exchange over the 30-trading day period ending June 1 of A$0.44, LNGL said.
Net proceeds from the share placement are to be used in support of ongoing LNG offtake market efforts, focused on Magnolia LNG, and for general corporate purposes, LNGL said.
IDG Energy Investment’s president Liu Zhihai said: “We are excited to announce our investment in and support for LNGL and its Magnolia LNG project, which we see as one of the best positioned US liquefaction projects to deliver needed LNG exports to Asia. IDG Energy Investment is particularly bullish on the long-term outlook for US-sourced LNG into China, and we will immediately begin working with LNGL to assist them in unlocking this market”.
Settlement of the deal is scheduled to be completed on or before June 15 and the placement shares are expected to be issued on that date. It’s not conditional on any Australian or foreign government approvals.
LNGL’s portfolio includes the 8mn ton per year or greater LNG export terminal development in Louisiana, the Canadian 8mn ton per year or greater LNG development project and Bear Paw Pipeline Corporation, which is proposing to construct and operate a 62.5 kilometre gas pipeline to connect supply to Bear Head. And LNG Technology, which owns and develops the company’s mid-scale LNG business model OSMR LNG Liquefaction, which plans to deliver lower capital and operating costs, faster construction and improved efficiency relative to larger traditional LNG projects.
IDG Energy Investment is an investment holding company listed on the Stock Exchange of Hong Kong and affiliated with IDG Capital.