Velocys Raises GBP20 Million Via Oversubscribed Placing, Retail Offer

(Alliance News) - Velocys PLC said Thursday it has raised GBP20 million through a placing and ...

Alliance News 25 June, 2020 | 11:38AM
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(Alliance News) - Velocys PLC said Thursday it has raised GBP20 million through a placing and PrimaryBid retail offer, which will go towards product development and maintaining its balance sheet.

The renewable fuels firm said it issued 400.0 million shares at a price of 5.0 pence per share, reflecting a 53% discount to its closing price on Wednesday of 10.55 pence.

Shares in Velocys were 26% lower at 7.82 pence on Thursday in London.

Of the shares issued, 376.2 million shares were placed by Numis Securities Ltd, Canaccord Genuity Ltd and Turner Pope Investments Ltd. Meanwhile, Radnor Capital Partners Ltd and Peat & Co acted as selling agents for the placing.

Meanwhile, 22.6 million shares were issued to retail and other investors under the PrimaryBid.com offer, while directors subscribed for 1.2 million shares.

Velocys said it will raise a further GBP1 million through an open offer of 20.0 million shares to existing shareholders.

"We are delighted with the support shown by both new and existing investors in this fundraising - we are particularly pleased to see a number of high-quality institutional investors join our shareholder register. The offering was upsized from GBP10 million to GBP20 million to help meet the additional demand but we are pleased to say that even at this higher level the issue was still significantly oversubscribed," said Chief Executive Officer Henrik Wareborn.

"This capital raise accelerates our ability to provide commercial scale turn-key solutions to fuel producers in the energy transition away from fossil fuels into sustainable fuels towards improved air quality and net zero carbon emissions," Wareborn added.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Velocys PLC 6.90 GBX 6.15 -

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