Alpha HPA (ASX: $A4N) secures funding for HPA First project

Alpha HPA Limited (ASX: $A4N) has successfully secured funding for its HPA First project, including a fully underwritten institutional placement of new fully paid ordinary shares to institutional investors and a non-underwritten offer of new shares to eligible Alpha shareholders in Australia and New Zealand. The Equity Raising, comprising the Placement and SPP, will support the commercialisation of Stage 2 of the HPA First project, with the company committing to invest A$553M, including a A$79m contingency. The project has received credit approved A$320M facility secured from NAIF and EFA, along with government grants totalling A$67M. The funds raised will be used to immediately commence Stage 2 project execution.

Executive Commentary on HPA First project funding

The successful funding secured for the HPA First project marks a significant milestone for Alpha HPA. The underwritten institutional placement and non-underwritten offer of new shares demonstrate strong investor confidence in our project. The credit approved facility and government grants further validate the compelling economics for Stage 2, including the projected run rate EBITDA of approximately A$255M - A$403M. We are now well-positioned to commence the next phase of the project, with a focus on immediate project execution and the commercialisation of Stage 2.

Outlook for Alpha HPA and the HPA First project

Alpha HPA's successful funding for the HPA First project sets the stage for the company to advance its commercialisation efforts and achieve its projected financial metrics. With the secured funding, the company aims to immediately commence Stage 2 project execution, leveraging the credit approved facility, government grants, and the underwritten institutional placement. The projected run rate EBITDA of A$255M - A$403M reflects the compelling economics for Stage 2, highlighting the potential for strong financial performance. The successful funding underscores Alpha HPA's commitment to advancing its HPA First project and positions the company for future growth and success.