The Elixir Energy Ltd (ASX: EXR) share price is plummeting today following news of the company's latest placement and share purchase plan.
At the time of writing, the Elixir Energy share price is down 10%, with shares in the company trading for 41 cents apiece.
Let's take a closer look at the news released by the energy company today.
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Elixir Energy's capital raising
The Elixir Energy share price fall comes after the company announced it has successfully raised $10 million from a significantly oversubscribed placement.
The company will issue more than 27.7 million new shares under the placement.
They were each priced 20% less than the previous closing price and 18% less than the 5-day volume-weighted average price, at around 36 cents apiece.
Elixir Energy will also be completing a share purchase plan. It will issue shares at 36 cents apiece to raise another $20 million.
The share purchase plan is to open on Friday and will close on 7 May 2021.
The money raised by both expeditions will go towards Elixir Energy's "multi-faceted" appraisal program in Mongolia.
The company aims to bring forward the project development and production by between 18 and 24 months.
Commentary from management
Elixir managing director Neil Young said the company's efforts have allowed it to expand and accelerate its program in Mongolia. He added:
In addition to the support from existing and new sophisticated investors in the successful placement announced today, we are pleased to provide the opportunity to ensure all of our shareholders have the chance to share in our growing success by participating in a SPP.
Elixir Energy share price snapshot
Despite the drop following today's news, the Elixir Energy share price is having a fantastic year on the ASX.
Currently, it's up by 189% year to date and has lifted a massive 1,925% over the last 12 months.
The company has a market capitalisation of around $366 million, with approximately 814 million shares outstanding.
