7th Dec 2018 13:04
LONDON (Alliance News) - Quadrise Fuels International PLC said Friday it is looking to raise up to GBP2.2 million through a non-underwritten open offer or face winding down.
The emulsion technology and fuel supplier will issue 86.2 million shares at 2.5 pence each, on the basis of 1 open offer share for every existing 10 shares held today.
Shares in Quadrise were down 24% at 2.40 pence each on Friday.
Quadrise said it will have too seek alternative forms of finance if it does not receive the proceeds of the open offer.
The company said it will run out of cash if it does not receive additional funding by the end of January, resulting in a winding down order. Quadrise expects to receive the funds from the open offer on January 15.
Quadrise had cash balances of GBP1.2 million on November 30.
The company believes the funds raised from the open offer will allow it to continue to operate until early October 2019.
Quadrise said each of its directors will subscribe for 1.1 million open offer shares.
The company noted, "notwithstanding the challenges faced in key markets", it still believes there are "substantial opportunities" in the power generation and marine markets in the near-term.
Quadrise said it has "substantially recovered" from the "unfortunate setbacks" in 2018 and is on course to develop a "broader platform and pipeline of opportunities" for its technology.
The company said it "still has some way to go" to progress these opportunities into commercial contracts, the change in fuel oil and distillate markets, has "fundamentally improved" the economics for its projects.
Related Shares:
QFI.L