27th Jun 2014 09:09
LONDON (Alliance News) - Camco Clean Energy PLC shares plunged 33% Friday, after the sustainable energy development company said it intends to raise a total of GBP1.5 million before expenses in a placing and open offer at 4 pence per share.
Camco Clean Energy said the issue price of the placing and open offer shares represent a 42% discount to the closing middle market price of 6.875 pence on Thursday.
The company's stock were down 33% to 4.59 pence Friday morning.
Camco said it will place 25 million new shares at 4 pence each in the placing, and up to 13 million new shares in the open offer, on the basis of 1 new shares for every 16 existing shares held, again at 4 pence each.
It said it plans to 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.
REDT, which has developed a flow battery for energy storage, is 49% owned by Camco.
The company said that N+1 Singer is leading the placing.
In a separate statement Friday, the company, which develops emission reduction and clean energy projects, said it narrowed its losses in 2013, but saw a drop in revenues during the year.
Camco reported a pretax loss of EUR3.6 million in 2013, compared with a EUR23.2 million loss in 2012, when it booked a huge amount of impairment charges associated with restructuring the business. It said the smaller loss in 2013 was also supported by a 25% reduction in administrative expenses.
Revenues in the year fell to EUR12.3 million, down from EUR15.8 million in 2012. It said that after taking into account the 2012 carbon fair value adjustment of EUR9.2 million, revenues in 2012 were only EUR6.5 million.
The company spent 2013 restructuring and trying to stabilise the business.
Camco said it has seen a positive start to 2014 with significant developments in each of its three businesses - REDT Clean Energy Storage, US Clean Energy and Africa Clean Energy.
It said its two agricultural biogas operations in the US are both trading ahead of management expectations, while its energy storage business, REDT Energy, remains on track to deliver a 1.26 megawatt system onto Gigha, an island off western Scotland, in early 2015. The company said its Africa clean energy consulting business has also had a good start to the year and continues to work and bid on projects throughout sub-Saharan Africa.
"We are working hard to grow this business to deliver complementary revenue streams and have a number of prospects available to us...With the opportunities available to us across our business units, the board remains confident and excited about the future prospects of the company," Camco Clean Energy said in its statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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