The board of Velocys plc, the renewable fuels technology company, announced on 15 July 2019 that it proposes to raise, subject to certain conditions, £7 million (before expenses) by way of a conditional placing of 233 333 335 placing shares at a placing price of 3 pence per share to certain institutional and other investors.
The placing complements commitments received by Velocys from the Altalto Immingham waste-to-sustainable-fuels project’s strategic partners, British Airways and Shell, of £2.8 million in total towards the final pre-FEED stage, planning permission and completion of commercial arrangements.
Net proceeds of the pPlacing will be used predominantly:
- To complete the development capital fund raising and initial stages of development of the Front End Engineering Design (FEED) for the Mississippi Biorefinery Project.
- To strengthen and extend Velocys’ intellectual property portfolio.
- For working capital and central costs.
- On analysing and testing catalyst and Fischer-Tropsch reactors from the recently completed full scale demonstration run in Oklahoma.
Henrik Wareborn, Chief Executive Officer of Velocys, said “I am delighted with the level of support Velocys has received from existing and new institutional investors. This complements the commitments by Shell and British Airways to co-fund the remaining pre-FEED project work to bring the Altalto Immingham biorefinery project to the same state of pre-FEED completion as our Bayou Fuels project in Mississippi. As a result, we can provide strategic partners with two truly sustainable fuel projects, and a solution that can be deployed widely to decarbonise aviation and heavy goods transport.”
The placing is conditional (amongst other things) upon the passing of certain resolutions. A General Meeting is being convened for the purpose of considering the relevant resolutions at 10:30 a.m. on 31 July 2019 at the offices of Mayer Brown International LLP, 201 Bishopsgate, London, EC2M 3AF.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/15072019/velocys-has-secured-7-million-by-way-of-a-placing/