Lotus Resources Limited (ASX: LOT) has successfully completed the institutional component of its pro rata accelerated non-renounceable entitlement offer, securing approximately A$34.2 million. This capital raise is designed to provide the necessary balance sheet flexibility as the company continues the transition of its Kayelekera uranium project in Malawi from development toward steady-state production.

The institutional bookbuild attracted participation from existing shareholders alongside various new Australian and international institutional investors. Following the successful completion of this tranche, the company requested that the Australian Securities Exchange lift the voluntary suspension of its shares, allowing trading to resume. Settlement of the institutional offer is expected to occur on 31 July 2026.

"We are very grateful for the support shown by our existing and new institutional shareholders at this challenging yet pivotal time for Lotus. These funds provide the balance sheet strength to see Kayelekera complete its production ramp-up and to see our way through to positive cashflow. Our focus now is on rebuilding value for all shareholders and we look forward to giving our retail shareholders the same opportunity to participate when the Retail Entitlement Offer opens on 30 July 2026."

— Greg Bittar, Managing Director

The total funding package, which includes the institutional and retail equity components, a senior unsecured convertible note, and an inventory-backed prepayment facility, aims to de-risk the ongoing ramp-up activities at the site. The company is now preparing to extend the equity raise to eligible retail shareholders.

This retail component is scheduled to open on 30 July 2026 and is expected to raise up to an additional A$26.0 million. CVI Investments, an entity managed by Heights Capital Management, has entered into an agreement to sub-underwrite the retail offer on a priority basis for A$5 million. The retail offer is set to close at 5:00pm AEST on 13 August 2026. Participation is open to eligible retail shareholders in Australia and New Zealand, who will be able to subscribe for new shares at the same offer price as the institutional participants.

The directors of the company have committed to participating in the equity raising, including exercising their entitlements and providing additional sub-underwriting commitments for a combined total of A$400,000. These funds collectively support the company's objective to reach steady-state operations and achieve sustainable cashflow at the Malawi-based project, reinforcing the firm's strategic focus on its primary asset as it advances through this critical operational phase.

Read the full announcement: Completion of Institutional Entitlement Offer Bookbuild