LONDON - 80 Mile plc ("80M" or the "Company"), an exploration and production company, announced its plans to raise approximately £1.5 million through a placing of new ordinary shares. The funds will primarily support the acquisition of a significant interest in Hydrogen Valley Ltd and its subsidiary Greenswitch srl, marking a strategic expansion into biofuels and industrial gases.
The placing, priced at 0.27 pence per share, represents a 6.90% discount to the closing price on December 18, 2024. The new shares will account for about 15.96% of the enlarged share capital post-placement.
The acquisition aligns with 80 Mile's strategy to diversify its portfolio to include biofuels, sustainable aviation fuels (SAF), glycerine, and green hydrogen. The Greenswitch facility, located in Italy's Basilicata region, possesses a production capacity of up to 140,000 tonnes/year and is situated within a Special Economic Zone offering economic incentives.
The transaction is subject to due diligence and legal documentation finalization. If the acquisition does not proceed, the placement funds will support working capital and other projects.
Eric Sondergaard, Managing Director of 80 Mile, expressed confidence in the transformative nature of the acquisition. The integration of Hydrogen Valley and Greenswitch is expected to enhance the company's capabilities in biofuel and distillate production, with revenue generation anticipated in Q1 2025.
Robert Price, incoming CEO of the new industrial gas and petrochemical business unit, highlighted the focus on expanding production and introducing SAF and green hydrogen to meet the challenges of decarbonization in aviation and heavy industry.
The Greenswitch project aims to restart ESO and biofuels production in Q1 2025, with plans to scale up biodiesel production and secure government grants for green hydrogen production.
The acquisition details include an option for 80 Mile to increase its interest to 100% within a 12 to 24-month window, for an additional £6.05 million.
This announcement is based on a press release statement and does not constitute an endorsement of 80 Mile plc or its potential market performance.
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