$12M capital raise @ 20c per share completed

Investment Memo: IVZ 2022

Objective #3: Financing for drilling

Yesterday our 2020 Energy Pick Of The Year Invictus Energy (ASX: IVZ) announced that it had just completed a placement raising $12M at 20c per share.

One notable participant in the raise was IVZ chairman Joe Mutiwiza who is a member of the Presidential Advisory Council (PAC), a body appointed by Zimbabwe’s President to assist the President in formulating key economic policies and strategies in the country.

We see this as a vote of confidence from someone with deep in-country experience and only months out from IVZ’s maiden drilling program.

It looks like the placement was completed over the weekend with investors who participated in the capital raise also receiving one free option for every two shares purchased.

This will mean that the following will be issued:

• 60,026,165 IVZ shares at 20c per share.
• 30,013,083 options exercisable at 35c per share, expiring 11th July 2023.

The shares from the capital raise are expected to be issued on the 30th of May with the options expected to be issued on the 7th of July.

The IVZ share price is currently trading at ~25c per share which will mean the investors who participated in the capital raise will be up ~20% on the shares they receive if the share price stays at these levels on the 30th of May.

When these type placements are done we generally see some churn in the company’s shares as some of those investors look to sell their shares and hold onto their options. In the short term we would expect the share price of IVZ to come back down to ~20c per share, barring any unexpected share price catalysts.