Cauldron Energy's Pro-Rata Entitlement Issue

Cauldron Energy Limited (ASX:CXU) has announced a pro-rata non-renounceable entitlement issue, offering one share for every eleven shares held at an issue price of $0.018 per share. Additionally, one free option exercisable at $0.015 on or before 30 December 2025 will be issued for every four shares applied for. The company aims to raise approximately $2,024,232 through this Entitlement Offer, which is fully underwritten by Canaccord Genuity (Australia) Limited. The prospectus also includes secondary offers to the underwriter and participants in the company's placement announced on 27 September 2024.

Executive Commentary

The company is pleased to announce the pro-rata entitlement issue, which is a strategic move to raise funds for specific purposes outlined in the prospectus. We believe that this offer, underwritten by Canaccord Genuity (Australia) Limited, will strengthen our financial position and support our ongoing initiatives. The details of the offer, including the issue price and the entitlement of options, have been carefully considered to provide an opportunity for our shareholders to participate in the company's growth.

Summary of Entitlement Offer

Cauldron Energy Limited (ASX:CXU) has announced a pro-rata non-renounceable entitlement issue to raise approximately $2,024,232, fully underwritten by Canaccord Genuity (Australia) Limited. The company aims to increase its cash reserves by $3,640,250 after deducting estimated expenses of the offers and placement. The offers are expected to increase the number of shares on issue from 1,237,030,631 to 1,460,599,072 shares, and the number of options on issue from 249,751,144 to 333,757,588 options. The pro-forma balance sheet has been prepared assuming all entitlements are accepted, and no options or convertible securities are exercised prior to the record date, including expenses of the offers. The company's directors have carefully considered the matters set out in ASIC Regulatory Guide 170 and believe that this offer will contribute to the company's financial objectives and growth plans.