Gelion to raise £10.5 million to advance battery technology

LONDON - Gelion plc (AIM:GELN) announced Thursday plans to raise up to £10.5 million through a placing, subscription and retail offer at 20 pence per share to accelerate the development of its innovative sulfur-based battery technology.

The energy storage innovator will issue up to 52.5 million new shares, with £10 million to be raised from institutional investors and management through the placing and subscription. A separate retail offer aims to raise up to £0.5 million from existing shareholders and new retail investors.

Several company executives, including CEO John Wood and founder Thomas Maschmeyer, intend to participate in the fundraising with a combined investment of £0.23 million.

The issue price represents an 18.4% discount to Wednesday’s closing price of 24.5 pence per share. The fundraising is conditional upon shareholder approval at a general meeting to be held on November 5.

Gelion plans to use the proceeds to develop commercial pouch cell prototypes with its recently announced Tier One battery manufacturing partner, complete a prototype project with QinetiQ, and progress toward product market fit. The company will also develop its sales integration business unit and strengthen its balance sheet.

The company has made significant progress in recent months, including validating its sulfur cathode technology with a major Asian battery manufacturer, which has led to a multi-year collaboration agreement. Gelion has also secured a £1.1 million prototyping project with QinetiQ plc (LON:QQ), supported by a £530,000 government grant.

Gelion’s technology focuses on developing a "drop-in" sulfur cathode active material that replaces expensive and toxic materials such as nickel and cobalt while remaining compatible with existing manufacturing infrastructure.

CEO John Wood said: "The funding entrusted to us gives our Company the opportunity to convert that position to commercial success through applied development and collaboration across the full supply chain."

As of September 30, 2025, Gelion held cash resources of approximately £2.3 million, which together with the net proceeds from the fundraising is expected to support operations for at least the next 18 months.

The new shares are expected to be admitted to trading on AIM on November 7, 2025.

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