23rd Jul 2018 10:46
LONDON (Alliance News) - Renewable fuels company Velocys PLC said Monday that it intends to raise GBP6 million by way of a discounted share placing.
The company has placed 60 million new ordinary shares at a placing price of 10.00 pence per share, a 5% discount to the closing price on Friday of 10.60p.
The stock was trading 6.5% lower at 9.84 pence each on Monday morning. The placing shares represent around 15% of the company's enlarged share capital.
"Today's financing enhances our runway and will be used to drive forward our US and UK projects to meet their next major milestones over the coming months and to support ENVIA," said Chief Executive David Pummell.
ENVIA is a plant in Oklahoma City in the US that incorporates the company's technology.
Velocys plans to use the placing proceeds to strengthen its balance sheet, fund its share of the pre-Front End Engineering Design development costs for its UK waste-to-renewable jet fuel project, and support the ENVIA project.
It will also used the proceeds to support the process for on-boarding one or more strategic investors to provide development funding for its Mississippi biorefinery project.
The share placing is being managed by Cannacord Genuity, Numis Securities Ltd, Peat & Co and Turner Pope Investments Ltd and is not being underwritten.
Related Shares:
VLS.L