Jade Gas Prices New Shares at $0.035, Offering 12.5% Discount in $2.1M Raise
Jade Gas Holdings Limited (ASX – JGH) has launched a $2.1 million Share Purchase Plan offering eligible shareholders new shares at a 12.5% discount, aiming to accelerate commercial gas production and LNG facility development.
- Share Purchase Plan offers up to $30,000 per eligible shareholder
- Shares priced at $0.035, a 12.5% discount to last closing price
- Maximum raise capped at $2.1 million with potential scale back
- Funds targeted for Red Lake gas field development and LNG production
- Offer open to Australian and New Zealand shareholders, excluding US persons
Jade Gas Launches Share Purchase Plan
Jade Gas Holdings Limited (ASX – JGH), an emerging player in the oil and gas exploration sector, has announced a Share Purchase Plan (SPP) designed to raise up to $2.1 million. The offer invites eligible shareholders to purchase new fully paid ordinary shares at $0.035 each, representing a notable 12.5% discount to the company’s last closing price on the ASX.
The SPP opens on October 24, 2025, and closes on November 14, 2025, providing shareholders registered by October 15 with the opportunity to invest up to $30,000 without brokerage or transaction fees. This initiative follows a recent placement to professional investors, aligning with Jade Gas’s strategy to broaden its shareholder base while securing capital for key projects.
Strategic Use of Raised Capital
The funds raised through the SPP are earmarked primarily for advancing commercial gas production at the Red Lake gas field, a cornerstone asset for Jade Gas. The capital will also support the completion of a detailed economic study and the construction of modular surface facilities for liquefied natural gas (LNG) production. Additionally, the company plans to allocate resources toward early works that underpin its first commercial revenues, alongside general working capital needs.
This targeted deployment of funds underscores Jade Gas’s commitment to transitioning from exploration to production, a critical phase that could significantly enhance shareholder value if successful.
Offer Mechanics and Investor Considerations
The SPP is non-renounceable and available exclusively to shareholders with registered addresses in Australia and New Zealand, explicitly excluding those in the United States or acting on behalf of US persons. The issue price reflects a 19.4% discount to the volume-weighted average price over the five trading days preceding the offer, providing an attractive entry point for investors.
In the event of oversubscription, Jade Gas reserves the right to scale back applications, ensuring compliance with ASX Listing Rules and maintaining equitable allocation. Shareholders are advised that the market price of shares may fluctuate between the offer announcement and the allotment date, introducing an element of risk typical of speculative investments.
Looking Ahead
Jade Gas’s SPP represents a strategic capital raising effort aimed at underpinning its growth ambitions in the competitive energy sector. The success of this offer and the subsequent deployment of funds will be pivotal in determining the company’s trajectory toward commercial gas production and LNG facility development.
Investors and market watchers will be keen to monitor subscription levels, potential scale back decisions, and how effectively the company translates this capital injection into operational milestones.
Bottom Line?
Jade Gas’s discounted share offer sets the stage for critical project funding, but market response and execution will be key to unlocking value.
Questions in the middle?
- Will the SPP reach full subscription or face scale back due to oversubscription?
- How will Jade Gas prioritize spending across its gas production and LNG facility initiatives?
- What impact will market volatility have on share price post-SPP allotment?
