Brooge Energy Ltd. Announces Filing of Form F-3 Shelf Registration Statement and Intention to Offer Securities Primarily to Fund Phase III Expansion Project

Rhea-AI Summary

Brooge Energy Ltd. (NASDAQ: BROG) announced a shelf registration statement with the SEC on April 19, 2021, for a proposed public offering of ordinary shares. This offering aims to fund the construction of the Phase III project, potentially increasing storage capacity by up to 3.5 million m³. If effective, the registration statement could allow the sale of up to US$500 million in various securities. The final terms of the offering will be detailed in a subsequent prospectus supplement.

Positive

• The Phase III project is set to increase storage capacity by 3.5 million m³.
• The proposed offering could raise up to US$500 million to support business expansion.

Negative

• The effectiveness of the registration statement depends on market conditions and SEC approval.
• Actual completion of the public offering is uncertain and may depend on various factors.

Phase III expansion is expected to increase storage capacity by up to 3.5 million m³

NEW YORK, April 22, 2021 (GLOBE NEWSWIRE) -- Brooge Energy Ltd. (“Brooge Energy” or the “Company”) (NASDAQ: BROG), a midstream oil storage and service provider strategically located outside the Strait of Hormuz, adjacent to the Port of Fujairah in the United Arab Emirates, today announced that on April 19, 2021 the Company filed a shelf registration statement on Form F-3 with the U.S. Securities and Exchange Commission (the “SEC”).

The Company intends to conduct an underwritten public offering of ordinary shares. The purpose of the proposed offering is to fund the construction of the Company’s Phase III project, which is expected to increase its storage capacity by up to 3.5 million m³.  The proposed offering is subject to market and other conditions, including the effectiveness of the registration statement filed under the U.S. Securities Act of 1933, as amended (the “Securities Act”). These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

If the registration statement related to these securities is declared effective by the SEC, up to US$500.0 million of various securities, including ordinary shares, preferred shares, warrants, rights and units, may be offered and sold by the Company from time to time. The registration statement additionally relates to the potential sale of up to 6,000,000 ordinary shares that may be offered from time to time by the shareholder identified in the prospectus. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This announcement is being made pursuant to, and in accordance with, Rule 135 under the Securities Act.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act.

About Brooge Energy Limited

Brooge Energy conducts all of its business and operations through its wholly owned subsidiaries, Brooge Petroleum and Gas Investment Company FZE (“BPGIC”) and Brooge Petroleum and Gas Investment Company Phase III FZE (“BPGIC III”), Fujairah Free Zone Entities. Brooge Energy is a midstream oil storage and service provider strategically located outside the Strait of Hormuz adjacent to the Port of Fujairah in the United Arab Emirates. Its oil storage business differentiates itself from competitors by providing customers with fast order processing times, excellent customer service and high accuracy blending services with low oil losses. For more information please visit at www.broogeenergy.com

Forward-Looking Statements

This press release contains statements concerning, among other matters, a proposed offering and the purpose thereof that constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current views based on certain assumptions, and they involve risks and uncertainties. Actual results, events or performance may differ materially from the forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including risks described in public reports filed by Brooge Energy with the SEC, including under the caption “Risk Factors” in Brooge Energy’s Annual Report on Annual Report on Form 20-F for the year ended December 31, 2020, filed with the SEC on April 5, 2021, as amended by Amendment No. 1 to the Annual Report on Form 20-F/A filed with the SEC on April 6, 2021. There can also be no assurance that the registration statement will be declared effective by the SEC, or that Brooge Energy will be able to complete the public offering on anticipated terms, or at all. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Brooge Energy does not undertake any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact
KCSA Strategic Communications
Valter Pinto / Elizabeth Barker
+1 212-896-1254 or +1 212-896-1203
BROG@kcsa.com 

FAQ

What is Brooge Energy's recent stock offering announcement?

Brooge Energy announced a proposed public offering to fund its Phase III project, aimed at increasing storage capacity.

How much could Brooge Energy raise in its public offering?

The company could potentially raise up to US$500 million through this offering.

What is the purpose of Brooge Energy's Phase III project?

The Phase III project aims to increase the company's storage capacity by up to 3.5 million m³.

What conditions must be met for Brooge Energy's registration statement to become effective?

The registration statement is subject to market conditions and must be approved by the SEC.