Executive Summary

This report provides a summary of the Renergen and ASPI offer, along with the latest developments related to it. ASPI has made a firm offer to buy all shares of Renergen. This offer is planned to happen through a formal arrangement between Renergen and its shareholders. If this arrangement does not go through, there is a backup “standby offer” that can be used instead.
A detailed document explaining the offer and setting out the meeting details was sent to all Renergen shareholders listed as of 30 May 2025. This document explains how the offer will work and what conditions need to be met for it to proceed.

If the main arrangement is successful:

•  Shareholders will receive new shares from ASPI according to a set exchange rate
•  ASPI will take full ownership of Renergen
• Renergen Shares will be delisted from the JSE, A2X and ASX

If the arrangement fails because certain conditions are not met, the standby offer will open. This backup offer will have the same terms as the original one and shareholders will be informed when it becomes available.

Analyst thesis

Renergen holds a unique and valuable asset in the Virginia Gas Project, with helium concentrations far above global averages and strong long-term growth potential. However, ongoing operational delays and equipment challenges have prevented the company from fully benefiting from high gas prices. As a capital-intensive business, Renergen faces significant funding needs, often relying on debt that strains its balance sheet or equity issuance that risks substantial dilution due to the low share price. These pressures have raised concerns about its financial stability, though these may ease as operations ramp up to full capacity.

The proposed acquisition by ASP Isotopes offers a strategic solution by integrating Renergen into a larger, US-listed entity with better access to capital. The merger will combine Renergen’s helium production with ASPI’s isotope technology, creating operational synergies and expanding the business into the broader critical materials market. While Renergen shareholders will take a smaller stake in the merged company, they gain exposure to a more diversified, well-funded platform. The deal represents a significant shift in Renergen’s outlook, improving its financial position and unlocking longterm value.