MEC raised a further $179,263 before costs at $0.0044 per share (40,741,652 shares), taking shares on issue to 884,993,167. Free attaching options at $0.0055 need shareholder approval at the AGM. Shares are locked pending a prospectus; ASX reinstatement submissions continue.
What it means for a shareholder
40.7m new shares at about A$0.0044 to raise about A$179,263. That's 5.6% dilution: every existing holder's slice gets 5.6% smaller. If you held A$1,000 of shares (227,273 at the issue price), your slice goes from 0.0332% to 0.0313% of the company. To keep it you'd need 13,528 more shares - about A$60 at the issue price.
The Administrative Appeals Tribunal set aside the revocation of MEC's Pooled Development Fund registration and reinstated it. Resolves the appeal heard in January 2022. Restores the 15% tax rate on income and gains and the capital gains exemption for shareholders.
The half-year report to 31 December 2022 carried an auditor review with a material uncertainty on going concern. It also flagged recovery of loans to Advent of $4,161,135 and the $4,275,213 Advent investment, which depends on Advent commercialising or selling its core assets.
Update to the 21 February placement: each of the 33,488,180 shares also came with a free option exercisable at $0.0055, expiring 21 February 2025. The raise remains $154,388 at $0.0044 per share.
What it means for a shareholder
33.5m new shares at about A$0.0046 to raise about A$154,388. That's 4.7% dilution: every existing holder's slice gets 4.7% smaller. If you held A$1,000 of shares (216,909 at the issue price), your slice goes from 0.0317% to 0.0302% of the company. To keep it you'd need 10,613 more shares - about A$49 at the issue price.
21 Feb 2023capital raising announcement▲ GoodMajor
MEC raised $154,388 before costs through a placement of 33,488,180 shares at $0.0044, lifting shares on issue to 842,651,515. Funds are for compliance, work toward reinstatement and working capital. Eases the thin cash position; LeMessurier takes a 6% fee.
What it means for a shareholder
33.5m new shares at A$0.0044 to raise about A$154,388. That's 4.7% dilution: every existing holder's slice gets 4.7% smaller. If you held A$1,000 of shares (227,273 at the issue price), your slice goes from 0.0332% to 0.0317% of the company. To keep it you'd need 11,120 more shares - about A$49 at the issue price.
FY22 annual report auditor's report (Moore Australia) carries unmodified opinions with material uncertainty on going concern. It also flags recovery of loans to Advent ($3,837,111 net) and the Advent investment ($4,275,213), which depends on Advent commercialising or selling PEP11.
Appendix 4G key to corporate governance disclosures for the year to 30 June 2022, pointing to the statement on the company website. Administrative filing with no new substance.
Corporate governance statement dated 15 February 2023 accompanying the annual report. The excerpt shows it follows most ASX recommendations but has no formal diversity policy or measurable gender objectives. Administrative disclosure.
The Federal Court quashed the former Prime Minister's refusal of the PEP 11 extension and work program changes, finding apprehended bias. The application goes back to the Joint Authority to be decided according to law, with costs to Asset. Resolves the 2022 challenge; permit stays in force.
The Federal Court vacated several pre-hearing orders in the PEP11 case. The court is expected to consider the parties' joint position to settle without a trial. The permit remains in force.
Asset Energy and the Government filed proposed consent orders to end the PEP11 case without trial. If granted, the refusal of the variation, suspension and extension is set aside and must be remade according to law. The permit stays in force meanwhile.
Appendix 4C for December 2022 quarter: MEC's operating cash outflow was $16.2K and cash at quarter end was $21.6K. BPH advanced $12.4K at 7% interest, repayable after a capital raise. Funding is under two quarters, so the company is thinly funded.
Quarterly report to 31 December 2022 confirms the Taranaki termination. OMV returned US$1.621M, and Advent repaid BPH about A$2.26M, A$800K and A$146K interest. PEP11 court challenge continues. MEC separately borrows from BPH for working capital.
15 Dec 2022material agreement termination▼ BadMajor
Advent's subsidiary terminated the Taranaki farm-out with OMV NZ (30% of three permits), as the NZ Minister's approval was not obtained within 6 months. OMV's possible sale to Carlyle added uncertainty. Advent will focus on Australian projects including PEP11.
Quarterly report to 30 September 2022 repeats the PEP11 refusals and the amended Federal Court claims of bias and procedural unfairness. It also repeats the Taranaki farm-out background. MEC holds 38.27% of Advent. No new results.
Asset Energy amended its Federal Court application, claiming actual bias, apprehended bias and denial of procedural fairness by the former Prime Minister. It also claims he was not validly appointed as the responsible minister. Sharpens the challenge to the PEP-11 refusal.
Documents on the former Prime Minister's PEP-11 decision were provided to the Federal Court on 5 October 2022 by the Resources Minister. This is a procedural step in Asset Energy's challenge; no ruling yet.
Advent's annual financial report to 30 June 2022 was released. Directors are Breeze (Executive Chairman), Kelemen, James, Huston and Fontaine; auditor is Moore Australia. The extract provided contains no financial figures.
Advent and BPH are reviewing PEP-11 options, including legal channels, after media coverage of Scott Morrison's ministerial powers. An environmental plan for the Baleen well has been received from Xodus and is under review. Continues the June Federal Court challenge; no outcome yet.
ASX lists MEC among already-suspended entities that had not paid annual listing fees for the year to 30 June 2023. Entities still unpaid by 5pm on 26 August 2022 face removal from the official list.
Quarterly report to 30 June 2022 restates the PEP11 refusals, the 2 June Federal Court challenge and the Taranaki farm-out with BPH's $3.0M loan. MEC still holds 38.27% of Advent. No new results; the farm-out approvals expected mid-2022 are not reported as complete.
2 Aug 2022asset acquisition disposition● NeutralMajor
Advent and BPH settled the purchase of 10% of Clean Hydrogen Technologies for US$1M (BPH 8%, Advent 2%) after BPH shareholders approved on 21 June 2022. They hold a right of first refusal on a further 10% for up to US$1M by 31 December 2022.
2 June 2022regulatory community update● NeutralMajor
Advent's subsidiary Asset Energy applied to the Federal Court for judicial review of the Joint Authority's refusal to vary, suspend and extend the PEP11 permit. This is the legal challenge to the extension refusal; MEC holds 38.27% of Advent.
MEC's half-year loss to 31 December 2021 was $330,848 (prior period $475,577), with no revenue. Still suspended; ASX is assessing a January 2022 submission and MEC is preparing an entitlement offer to recapitalise. Murray and Verley resigned and Steve James joined the board on 4 March 2022.
30 May 2022asset acquisition disposition● NeutralMajor
Advent and BPH signed a binding term sheet to subscribe for 10% of hydrogen technology company Clean Hydrogen Technologies Corporation for US$1M (BPH US$800,000, Advent US$200,000 for 2%). Conditional on BPH shareholder approval on 21 June 2022 and due diligence. A new direction for Advent.
Quarterly report to 31 March 2022 restates the NOPTA refusal of the PEP11 variation and the Taranaki farm-out with OMV NZ (30% interest, BPH $3.0M loan). Also notes Advent's EP386 suspension application was not accepted and the minister's review is proceeding. MEC holds 38.27% of Advent.
MEC asks to extend its voluntary suspension to 28 April 2022. The PDF appeal was heard 27-28 January 2022; closing submissions are done and a final oral hearing is expected to conclude around late April. The ASX reinstatement submission is unchanged.
Advent signed a farm-out on 24 December 2021 to acquire 30% of three offshore Taranaki Basin permits (5,180 km2) from OMV New Zealand, subject to approvals expected by mid-2022. BPH lent Advent $3.0M to fund 2022 commitments. This is the new project Advent had been working on after the PEP11 setbacks.
