Renergen said it is preparing for a potential initial public offering (IPO) in the United States of American Depositary Shares (ADSs) and listing on the Nasdaq Stock Market in 2023.
To raise equity funding for Phase 2, Renergen is preparing a circular to shareholders where it will seek approval to issue additional shares by way of a specific issue of shares for cash.
The timing, number of ordinary shares represented by ADSs to be offered, and their price in the IPO have not yet been determined.
Renergen confidentially submitted a draft registration statement on Form F-1 to the Securities and Exchange Commission (SEC) in late 2022.
The proposed listing and capital raise are expected to commence after the SEC completes its final review processes, subject to market and other conditions.
Shareholders and potential investors should note that the proposed listing and capital raise may or may not proceed.
The circular to shareholders is in the process of being reviewed by the JSE and ASX and will be published once all regulatory approvals have been obtained.
This announcement followed news last week that Renergen has started to produce liquid helium at its Virginia Gas Project.
Renergen said the commissioning has been slower than anticipated due to the detection of a leak in the vacuum walls of the helium system’s pipes.
The leak was located and corrected in December, allowing them to move to the final step of commissioning with the integration of the helium compressor.
“Having the helium plant in operation and producing liquid helium is a truly spectacular achievement by the team,” Renergen CEO Stefano Marani said.
“All components of the Phase 1 plant are now in operation, and South Africa joins the ranks of only eight countries in the world to produce this rare and valuable liquid.”