LONDON - Clean Power Hydrogen plc (CPH2), a UK-based developer of green hydrogen technology, has announced its intention to raise £6 million through a combination of a placing and subscription of new ordinary shares, with an additional retail offer aimed at raising up to £0.3 million. The fundraising is set at an issue price of 7.5 pence per share.
The company, which has developed a Membrane-Free Electrolyser (MFE) technology, seeks to fund its working capital requirements and reach several key milestones. These include the deployment of its initial MFE110 electrolyser unit to Northern Ireland Water (NIW), completion of the design for the 1MW MFE220 commercial unit, and the Factory Acceptance Test of its first commercial MFE220 unit.
The placing and subscription are not contingent on the success of the retail offer, which will allow existing shareholders who have not participated in the placing or subscription to subscribe for new shares. The retail offer will be conducted on the Bookbuild platform, and details will be announced separately.
A general meeting is scheduled for January 8, 2025, to seek shareholder approval for the fundraising, with the results to be published on the company's website. If approved, the new shares are expected to start trading on the London Stock Exchange (LON:LSEG)'s AIM market on January 9, 2025.
The new shares will be issued as fully paid and will rank equally with the existing ordinary shares of the company. The anticipated new shares will represent approximately 23.75% of CPH2's issued ordinary share capital post-admission, assuming full take-up under the retail offer.
The issue price reflects a 4.5% discount to the closing mid-market price of the company's shares on the last trading day before the announcement. Members of the company's board and management team have expressed their intention to subscribe for shares amounting to approximately £0.56 million.
CEO Jon Duffy expressed confidence in the support from shareholders and the potential to attract new investors. The funds raised are expected to support CPH2's commercialization of the MFE220 and its sustainable growth initiatives.
This fundraising initiative is part of CPH2's broader strategy to scale up its manufacturing capabilities and activate its licensees over the next 18 months. The company is also exploring additional investment opportunities, including strategic partnerships and non-dilutive funding, to further its objectives without compromising its strategic goals.
The information provided is based on a press release statement from Clean Power Hydrogen.
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