Key Petroleum Limited (ASX: KEY) has announced an update to its previously announced pro-rata non-renounceable entitlement offer. The offer, initially announced on March 31, 2025, aimed to raise approximately $312,225 before expenses through a one-for-five entitlement offer to eligible shareholders at an issue price of $0.062 per share. The company has stated that the offer will now proceed without being underwritten, as the underwriter failed to deposit the required Trust Funds of $312,225 due to unforeseen circumstances, leading to the termination of the Underwriting Agreement.
Despite the withdrawal of the underwriter, all other terms of the offer remain unchanged, except for an updated timetable. Eligible shareholders, those holding shares as of 7:00 PM (AEST) on April 3, 2025, will receive details on how to access the Offer Document and Personalised Entitlement and Acceptance Forms by April 8, 2025. The closing date for the offer is now set for April 28, 2025.
The offer is non-renounceable, meaning shareholders who do not take up their entitlement will not receive any value for those entitlements, and their equity interest in the company will be diluted. The offer is available to eligible shareholders with a registered address in Australia, New Zealand, Hong Kong, and the United Kingdom.
Key Petroleum intends to use the funds raised from the offer for acquiring assets with development potential, covering regulatory costs for existing assets, funding general working capital, and covering the costs associated with the offer. The maximum number of new shares to be issued is 5,035,900, potentially raising up to $312,225 before expenses. The offer also includes a shortfall facility, allowing eligible shareholders who take up their full entitlement to apply for additional new shares. The allocation of shortfall shares will be at the company’s discretion, prioritizing eligible shareholders and then other investors as directed by the Board.
