Pure Hydrogen Corporation (PH2), an Australian sustainable energy firm, will become a significant stakeholder in Botala Energy if the company is admitted to the ASX.
Botala filed its prospectus on May 16 in preparation for its first public offering (IPO) (IPO).
As part of a sale and purchase deal, Pure Hydrogen will hold 19.99 percent of Botala, and Botala will get an additional 21% working interest in the Serowe CBM project, bringing its total ownership to 70%.
Pure Hydrogen will keep a 30% working interest in the project, which will be free carried until Botala has spent a total of $6.1 million on exploration and development by December 8, 2023.
Pure Hydrogen shareholders will have the chance to participate in the Botala IPO and will be given preferential access.
A total of up to 15 million shares have been set aside exclusively for Pure Hydrogen stockholders under the priority offer.
The exclusive shares are valued at 20 cents each, for a total issuance price of $3 million before costs.
The shares issued under the arrangement are expected to be escrowed for two years, though this has not been established.
Botala’s primary business is CBM exploration and development, but the firm is aware of the worldwide shift to renewable energy and is doing early-stage research and development to determine the possibility of developing renewable energy projects in addition to its primary business.
Pure Hydrogen Managing Director Scott Brown said, “We are thrilled about the relationship between Pure Hydrogen and Botala Energy and look forward to Botala being admitted to ASX and continuing to build the Serowe CBM project.”
“This opens up a lot of possibilities for moving on with the Serowe CBM project and exploring future hydrogen developments in Botswana.”
Pure Hydrogen and Botala have inked a new extension to their existing Serowe Hydrogen MOU until December 31, under which they are studying the formation of renewable energy enterprises focused on power generation.
