Singapore Exchange (SGX)-listed Geo Energy Resources is set to receive a substantial investment of US$35 million from Resource Invest AG (ResInvest), a private commodities investment firm. In exchange for this investment, ResInvest will secure a 5.5% stake in Geo Energy Resources.
The transaction is expected to be completed by March 31, 2026, and ResInvest will acquire the stake through market purchases and/or direct transactions with Geo Energy. The majority of the investment is slated to be finalized within eight weeks of the investment announcement, subject to the conditions outlined in the equity investment agreement.
As part of the equity investment, ResInvest will also purchase US$10 million worth of Geo Energy's treasury shares in two equal tranches. These transactions are anticipated to occur in February 2024 and February 2025, at placement prices of $0.45 per share and $0.50 per share.
Geo Energy stated, "The equity investment also comes with 41,402,727 non-listed, transferable and free warrants in the company to be issued to ResInvest". This strategic investment is expected to fortify Geo Energy Resources and foster its growth in the Indonesian coal production sector.