15th Jul 2014 10:27
LONDON (Alliance News) - Camco Clean Energy PLC Tuesday said it raised GBP0.5 million before expenses in an oversubscribed open offer, funds it said it will use to invest in the business.
Shares in the sustainable energy development company plunged 33% last month when it said it intended to raise a total of GBP1.5 million before expenses in a placing and open offer at 4 pence per share, as the issue price of the placing and open offer shares represented a 42% discount to the closing middle market price the day before the announcement.
The company said it would place 25 million shares with investors, while offering an additional 13 million new shares in the open offer, on the basis of 1 new share for every 16 existing shares held. Both the placing and the open offer were made at 4p.
Camco Clean Energy said Tuesday it receive acceptances for a total of 13.4 million shares in the open offer, which was oversubscribed.
The company said it will use the funds as additional capital to invest in the business, especially in its subsidiary Renewable Energy Dynamics Technology, which earlier this month entered into a manufacturing agreement with Jabil Circuit Inc to accelerate REDT's development towards commercial sales of its flow batteries in the near future.
Camco Clean Energy shares were down 1.1% at 4.32 pence Tuesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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