The Velocys PLC (LON: VLS) share price plunged 30.5% after announcing that the £6 million via a placing and retail offer had been completed after being launched yesterday. The company noted that the books remained open; hence, it will likely raise more money by today’s deadline.
YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The retail offer was for up to 20 million new ordinary shares in the company priced at 2.5p each to raise a total of £0.5 million (before expenses). The retail offer was conducted via the BookBuild Platform to give the company’s retail shareholders an opportunity to participate in the fundraise.
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Shareholders who did not participate in the retail offer also had another opportunity to purchase up to 77,648,390 new Ordinary Shares via an Open Offer at the placing price to raise up to £2 million via the Open Offer.
Velocys Strategic Investor, Carbon Direct Capital, conditionally agreed to subscribe for a minimum of $15 million (approx. £12 million) of the Convertible Loan Notes subject to the company receiving legally binding commitments regarding the minimum amount.
The company intends to use the funds raised to fund its Altalto and Bayou Fuels projects by supporting a significant scale-up of its capacity to become a leading provider of Sustainable Aviation Fuels (SAF).
The decline in Velocys’ share price was expected, given the significant discount offered to participating investors.
Henrik Wareborn, Velocys’ CEO, said: “There is global recognition of the urgent need to replace fossil-derived fuels with sustainable equivalents in order to tackle climate change. Velocys provides a unique technological pathway to the economic production of drop-in sustainable aviation fuel, which can decarbonise the aviation industry without the need for any aircraft engine modification.”
Adding:
“Put simply: we believe that we have a ready-to-go solution to the challenge of making aviation environmentally sustainable. The commitment from Carbon Direct Capital, which has partnered with a number of transformative carbon tech companies, to conditionally subscribe for a minimum of $15 million of convertible loan notes provides further demonstration of the increasing global awareness and expert validation of Velocys' proprietary technology.”
*This is not investment advice.
Velocys share price.
The Velocys share price plunged 30.5% to trade at 2.342p, from Thursday’s closing price of 3.370p.
YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.