ADX Energy Ltd (ASX:ADX) has issued a notice to eligible shareholders detailing a 2-for-5 renounceable entitlement offer priced at 1.2 cents per share, seeking to raise up to approximately $5.2 million before costs, with proceeds directed primarily toward drilling and production activities across the company's Austrian gas operations.

Key Points

  • Renounceable entitlement offer priced at $0.012 per new share on a 2-for-5 basis, with a record date of 5 November 2026
  • Up to 433,545,360 new shares and 216,772,680 new options to be issued, raising up to approximately $5.2 million before costs
  • One free attaching option issued for every two new shares subscribed, exercisable at $0.025 and expiring 31 December 2028
  • Offer is partially underwritten to a minimum of $1,000,000 by Mahe Capital Pty Ltd, which also acts as lead manager
  • All directors intend to participate in the entitlement offer

Offer Structure and Underwriting Terms

The entitlement offer is renounceable, allowing eligible shareholders to trade or transfer their rights on the ASX, with rights trading commencing 4 November 2026 and closing at the end of trading on 18 November 2026. The offer is subject to a minimum total subscription of $1,000,000 and is partially underwritten to that amount by Mahe Capital Pty Ltd (ACN 634 087 684, AFSL 517246). Upon completion, the company will issue to the underwriter or its nominees options at the rate of four options for every dollar raised, on the same terms as the new options, ranging from a minimum of 4,000,000 to a maximum of 20,810,177 underwriter options, issued as partial consideration for underwriting and lead managerial services.

Intended Application of Funds Raised

According to the filing, proceeds from the offer are intended to be applied primarily toward drilling, testing and completion of the GOLD-1 shallow gas well, well work to enhance production from the company's Vienna Basin fields in Austria, and Phase 2 production testing of the HOCH-1 gas discovery well. Additional uses include other exploration activities, general and administration costs including working capital, and the costs of the offers themselves. The company disclosed that the board reserves the right to alter the application of funds if intervening events or new circumstances arise.

Eligible Shareholders and Dilution Disclosure

The offers are available to eligible shareholders registered at 5:00pm AWST on the record date of 5 November 2026, whose registered addresses are located in Australia, New Zealand, Singapore, the United Kingdom or Monaco. Shareholders who do not take up their entitlements are disclosed to face dilution of approximately 28.57%, or approximately 37.50% if all new options are subsequently issued and exercised, compared to their holdings and the number of shares on issue as at the date of the prospectus. New shares issued under the offers will rank equally with existing shares on issue.