Key Petroleum Limited (KEY) has announced a non-renounceable pro rata entitlement offer to raise approximately A$312,225 before costs. The offer, detailed in an ASX announcement, allows eligible shareholders to subscribe for new fully paid ordinary shares at an issue price of A$0.062 per new share, based on one new share for every five existing shares held. The entitlement offer opened on April 8, 2025, and is scheduled to close on April 28, 2025.
The funds raised are earmarked for strategic initiatives, including the acquisition of income-producing assets with development potential, ensuring compliance with regulatory requirements for existing assets in Queensland, and bolstering working capital. A significant portion (approximately $120,000) is allocated to asset acquisition, $80,000 for regulatory costs, $76,225 for working capital and $36,000 for the costs associated with the Entitlement Offer.
The announcement specifies that the rights to new shares are non-renounceable, meaning there will be no trading of rights on the ASX. Shareholders who do not take up their entitlement by the closing date will see their entitlement lapse. Any new shares not subscribed for under the entitlement offer will form a shortfall, which will be offered to eligible shareholders and potentially other investors at the discretion of the board.
The offer is not underwritten, and the company emphasizes that an investment in new shares should be considered highly speculative, citing the risks associated with the company’s business detailed in the offer document. Key Petroleum encourages investors to carefully review the offer document in its entirety and seek professional advice before making any investment decisions. The announcement also includes important notices regarding restrictions on offers to shareholders outside of Australia, New Zealand, Hong Kong, and the United Kingdom.
