Inspired plc announces £28.25 million fundraising initiative

LONDON - Inspired plc (AIM: INSE), a technology-enabled service provider focused on energy optimization and climate change response, has announced plans to raise up to £28.25 million to bolster its balance sheet and fund growth opportunities. The fundraising will include a conditional placing of shares, the issuance of convertible loan notes, and a retail offer.

The company aims to raise approximately £21.25 million through the placement of ordinary shares at an issue price of 40 pence each, a slight premium to the recent market price. Attached to these shares will be warrants on a one-for-one basis, exercisable at twice the issue price. Additionally, Inspired plc intends to issue convertible loan notes to garner £5 million and a retail offer targeting up to £2 million.

The net proceeds from this fundraising are earmarked to strengthen the company's financial position. Inspired plc seeks to achieve a net debt/EBITDA ratio near 1:1 by the end of FY25 or earlier, with an anticipated net adjusted leverage ratio under 1.5x upon the completion of the placing. Directors of the company have expressed their intention to subscribe for a total of £408,880 under the placing.

This capital injection is expected to enable Inspired to capitalize on its Optimisation division's potential, where it has a pipeline of projects aimed at reducing energy consumption and carbon emissions for around 130 customers. The projects represent a revenue value of approximately £165 million and a potential gross margin contribution of about £58 million.

The fundraising follows a period of high debt levels and exposure to higher interest environments, with the Board citing the need for additional liquidity to support the company's growth and to facilitate future refinancing discussions. These discussions are anticipated to begin in FY25, given the progressive wind down of the Bank of Ireland's British Corporate Banking operation, one of the lending banks.

The fundraising is subject to shareholder approval at a general meeting scheduled for 7 January 2025, with the placement shares and retail shares expected to be admitted to trading on AIM on 8 January 2025. Gresham House Asset Management and Regent Gas Holdings Limited have indicated substantial support for the fundraising, with commitments to the placing and convertible loan notes.

The announcement of this fundraising is based on a press release statement by Inspired plc and contains inside information for the purposes of the UK Market Abuse Regulation.

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