Georgina Energy (GEX ) has raised £200,000 through the issue of 4 million shares at a placing price of 5p to an institutional investor.
The company has also entered a debt facility with the same investor of up to £1,000,000.
Georgina will initially draw down £300,000 from the facility.
The facility has a term of 3 years, and each drawdown of the debt has a term of 12 months.
The first drawdown of £300,000 will be convertible at 8p per share (reference price) and each drawdown thereafter at a 50% premium to the 5-day VWAP preceding the drawdown.
There is no interest to be applied to the loan.
The investor shall also receive warrants equal to 40% of each drawdown divided by the reference price, exercisable at a 50% premium to the relevant reference price.
Each issuance of warrants will have a 48-month term from the date of issuance (which may be offset against outstanding debt if exercised).
The first drawdown warrants will be exercisable at 8 pence.
Georgina Energy’s Chief Executive Officer Anthony Hamilton said: “We are delighted to welcome an Institutional Investor on the Company's share register.
“This strategic investment not only strengthens our balance sheet but also underscores institutional confidence in our vision and asset base.
“The funding provides us with the flexibility to accelerate the advancement of our key projects and evaluate additional growth opportunities to deliver enhanced shareholder value."
View from Vox
Interest-free funding from the new investor strengthens Georgina’s runway. The £300,000 first draw converts at 8 pence, with future tranches priced at a 50% VWAP premium and warrants also struck at a premium. That aligns incentives and moderates immediate dilution versus a straight placing.