29th Jan 2016 08:18
LONDON (Alliance News) - Energy storage and clean fuel company ITM Power PLC on Friday said it has raised funds through a placing and open offer as it reported an uptick in revenue and narrowing of its loss for the first half.
The company said it has raised GBP2.1 million through a firm placing with institutional investors, issuing 14.3 million shares at 15.00 pence per share. In addition to that, the company will issue up to 24.9 million further shares through an open offer at the same price in order to raise up to GBP3.7 million more.
Shares in the company were down 28% to 14.062 pence early Friday, the worst performer in the AIM All-Share.
ITM is seeking to raise at least GBP5.0 million from the two share issues to back its expansion plans.
The placing came as the firm said its interim pretax loss for the half to the end of October narrowed to GBP3.2 million from GBP3.7 million. Revenue rose to GBP655,000 from GBP521,000, but the narrower loss was driven by a sharp decline in research and development spending, which was not offset by a big rise in prototype production and engineering costs.
ITM said it secured a deal with Royal Dutch Shell PLC, the oil major, in the half to locate three hydrogen refuelling stations at Shell petrol stations in the UK, along with the launch of the first hydrogen refuelling station in the UK in the Advanced Manufacturing Park in Rotherham.
"The last six months have seen significant reports of customer satisfaction, meeting and exceeding initial expectations of ITM Power products which we now have operating in the field. This provides a good endorsement for the technology and a positive step for the industry," said Chairman Roger Putnam.
By Sam Unsted; [email protected]; @SamUAtAlliance
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