The Invictus Energy Ltd (ASX: IVZ) share price is soaring after the company recommenced trading this morning from a week-long halt.
At the time of writing, the oil and gas company’s shares are swapping hands at 14.5 cents apiece, up 26.09%
Let’s check the latest news from the company.
Cabora Bass capital raising
In its announcements today, Invictus said its capital raising will be to fund the development of its Cabora Bassa project in Zimbabwe.
The company says it has received investor commitments totalling $3.5 million before costs. Under its share placement scheme, Invictus will issue 35,000,000 new fully-paid ordinary shares at an issue price of 10 cents.
This represents a 13% discount on the company’s last closing price on 22 December and a 14.1% discount on the 5-day volume-weighted average price prior to the trading halt.
In addition, the company announced an additional share purchase plan for another 20 million shares for “long-term and loyal shareholders” which will raise a further $2 million.
All eligible shareholders will be able to apply for up to $30,000 of new shares.
Invictus says it plans to put the funds towards the project’s rig mobilisation fee, the purchase of “long lead items” for the planned 2-well drilling program, and the finalisation of data processing of its seismic survey.
The company is touting its Cabora Bassa project as “potentially the largest, undrilled seismically defined structure onshore Africa”.
The drilling program is due to start in the first half of 2022.
Invictus Energy share price snapshot
The Invictus Energy share price has skyrocketed over the last twelve months, up 145%.
The company has a market capitalisation of more than $80 million with almost 600 million shares issued.