Highlights

  • Provaris Energy announced a convertible note Facility and share purchase plan with total potential funding of up to A$1.8 million.
  • The funding package includes an unsecured convertible note facility of up to A$1.2 million.
  • The company launched a share purchase plan targeting up to A$600,000 from eligible shareholders.
  • Funds are intended to support hydrogen and liquid carbon dioxide tank development activities.
  • Further funding availability and Shareholder participation remain subject to transaction conditions.

Provaris Energy Ltd (ASX:PV1) is focused on developing technology solutions for hydrogen and liquid carbon dioxide transportation. The company’s latest announcement outlines a funding package involving a convertible note facility and share purchase plan, with proceeds intended to support technical and commercial programmes across its hydrogen and LCO2 tank initiatives.

Convertible Note Facility Details

Provaris Energy announced an unsecured convertible note facility of up to A$1.2 million with Whitehall Capital Holdings Pty Ltd, described by the company as an affiliate of Wolgan Partners. The initial Tranche has a Face Value of A$600,000 and consists of 120 notes issued at A$5,000 each.

The company stated that the initial tranche was expected to settle on 29 September 2026. The notes are issued at 90% of face value, resulting in an Investment amount of A$540,000 before applicable fees. The notes are unsecured and have a Maturity period of 24 months from issue.

Conversion Terms and Securities

The convertible notes include fixed and variable conversion mechanisms. The fixed conversion price is A$0.0102, while the variable conversion price is based on a percentage of VWAP calculations over a defined trading period before conversion.

A floor price of A$0.0043 applies to the first tranche. The company stated that conversion at the floor price could result in the issue of up to approximately 139.5 million ordinary shares from the initial tranche.

The first tranche also includes attaching securities, including unlisted options and ordinary shares issued under the company’s Placement capacity. The terms include specified exercise prices and expiry dates outlined in the announcement.

Share Purchase Plan

Alongside the convertible note facility, Provaris launched a share purchase plan targeting up to A$600,000 from eligible shareholders. The offer is available to shareholders registered on the Record Date with eligible Australian or New Zealand addresses.

The issue price under the share purchase plan is based on the lower of A$0.005 or a discount to the five-day VWAP. Eligible shareholders may apply within the limits specified by the company, with applications subject to equitable scaling if required.

Use of Funds and Development Activities

Provaris stated that proceeds from the funding initiatives will support Working Capital requirements and progress its hydrogen and liquid carbon dioxide technical and commercial programmes.

Planned activities include hydrogen prototype development, classification approvals, commercial readiness activities, LCO2 tank engineering and commercialisation activities with Yinson, along with general Business development requirements.

Key Considerations

The funding package provides Provaris Energy with additional capital pathways for its technology programmes. However, the number of shares issued through future conversion depends on applicable conversion terms and future conditions, while the outcome of the share purchase plan will depend on shareholder participation.

Key Insights

Provaris Energy’s latest announcement outlines a multi-part funding structure designed to support its hydrogen and LCO2 technology programmes. The update provides details on the financing arrangements, conversion mechanisms and planned use of funds, while future capital outcomes depend on completion of the relevant funding processes.