Perplexity deep dive analysis.
“
<aside> 💡
Why did Helium One Massively Dilute Helium One's shareholders to put up the funding for Galactica 6 wells to be drilled for a 50% working interest ???
And then again second time around, Massively Diluted Helium One's shareholders again to raise US10 Million to fund the driling of the next 9 wells Trent has planned for Galactica...???
</aside>
Helium One Global (LSE: HE1) subjected its shareholders to extraordinary dilution of 116.6% between June 2024 and November 2025, more than doubling the share count from approximately 4.3 billion to 9.3 billion shares. This dilution occurred through two distinct phases to fund their participation in the Galactica-Pegasus project:simplywall+2
First Galactica Funding Round (August 2024)share-talk+3
In August 2024, Helium One raised £6.43 million (~US$8.2 million) by issuing 590 million shares at 1.09 pence to institutional investor Cynosure Capital PTY Ltd. This represented a 37% discount to the trading price and added 10% dilution to the existing share count. The proceeds funded:sharesmagazine+2
<aside> 💡
Second Galactica Funding Round (2025 Convertible Loan Notes)ajbell+3
Helium One secured a £10 million institutional convertible loan facility in July 2025 to fund the next phase of Galactica development and its Tanzania operations. However, this financing proved even more dilutive as the share price collapsed:lse+1
Total CLN impact: 2,507 million shares for just £6.15 million raised. The unconverted balance of £2.125 million was repaid with a 12% termination fee (£2.38 million total).tipranks+1
The declining conversion prices (1.09p → 0.50p → 0.24p → 0.22p) created a "death spiral" effect, with later conversions requiring exponentially more shares for the same capital.
</aside>
Strategic Rationaleotcmarkets+2
CEO Lorna Blaisse stated the deal provided "the opportunity to diversify its helium portfolio and benefit from production and revenue from first helium gas in H1 2025". The partnership offered:share-talk