Provaris Secures $1.9M Funding for Hydrogen Tank Prototype Development

By November 30, 2023 3   min read  (419 words)

November 30, 2023 |

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Provaris Energy Ltd (ASX.PV1, Provaris, the Company) has successfully garnered $1.9 million through a share placement with institutional, sophisticated, and professional investors. The funds, raised at $0.04 per share, will be dedicated to constructing and testing a hydrogen prototype tank in Norway, commencing in January 2024. Additionally, the capital will support ongoing project development costs.

The placement involved issuing 47.5 million new fully paid ordinary shares. These funds will aid Provaris in receiving Final Class Approvals for its H2Neo hydrogen carrier’s prototype tank, alongside advancing existing hydrogen collaboration projects in Norway and covering corporate costs.

Martin Carolan, Provaris’ Managing Director and CEO, expressed his satisfaction with the strong investor participation. He highlighted the significance of this funding in progressing the company’s project platform, focusing on developing hydrogen supply chains in Europe, and constructing and testing a prototype tank in Norway. The successful testing of this prototype is crucial for obtaining Final Class Approvals and de-risking Provaris’ shipping and storage solutions. Carolan also emphasized the company’s role in delivering low-cost gaseous green hydrogen, aligning with Europe’s goal of importing 10 million tons per annum by 2030.

The Placement Details include the issue of the new shares at a 15% discount to the 5-day Volume Weighted Average Price as of November 27, 2023. The settlement is scheduled for December 7, 2023, with the new shares ranking equally with the company’s existing fully paid ordinary shares. Additionally, the placement entails issuing one free unlisted option for every two shares subscribed, resulting in 23.75 million placement options with an exercise price of $0.075 per share, expiring two years from the issue date, subject to shareholder approval at an EGM planned for February 2024.

Directors of Provaris have also shown their commitment by participating in the Placement, subscribing for a total of $230,000. The issue of Placement Shares to Directors is subject to shareholder approval at the forthcoming EGM. Bridge Street Capital Partners served as the Lead Manager and Bookrunner for the Placement.

About Provaris

Provaris is developing a portfolio of integrated green hydrogen projects, leveraging innovative compressed shipping IP and a focus on value creation through innovative development that aligns with our business model of simplicity and efficiency.

The choice to support all of the development phases of a project is in line with Provaris’ strategic desire to develop and invest in profitable hydrogen projects across the value chain, with a measured risk profile, and to retain an equity position of these assets over the long term.



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