Jade Gas Holdings (ASX:JGH) has secured firm commitments to raise AU$5 million via a strongly supported placement of around 143 million new shares at AU$0.035 per share, representing a 21.5% discount to the 10-day volume-weighted average price, according to a Thursday Australian bourse filing.
The company will also launch a non-underwritten share purchase plan allowing eligible Australian and New Zealand shareholders to apply for up to AU$30,000 in shares at AU$0.035 issue price, targeting up to AU$2.1 million with the option to accept oversubscriptions, the filing said.
The funds will primarily be used to support the company's strategic initiatives aimed at generating first commercial revenues from the Red Lake gas field, the filing added.