ITM Power has raised £29.4m via a firm placing and open offer to support the delivery of its contract backlog and opportunity pipeline.

Last month, the UK-based company said it planned to raise £25m (before expenses) through a placing of 62.5m New Ordinary Shares at a price of 40p per share with certain existing and new institutional investors. ITM Power also said it wanted to raise up to £4.4m through an open offer of 10.9m New Ordinary Shares.

ITM Power £29.4m share placing

The energy storage and clean fuel company has announced it has received valid acceptances in respect of 10,896,225 New Ordinary Shares pursuant to Qualifying Shareholders’ Open Offer Entitlements representing a percentage take up of 100%.

ITM Power added, “Accordingly, the aggregate amount raised pursuant to the open offer is approximately £4.4m and the aggregate amount raised pursuant to the firm placing and open offer is approximately £29.4m.”

The net proceeds of the firm placing and open offer will be used by the company to provide working capital to support the delivery of the contract backlog and opportunity pipeline; to move to new larger facilities which will consolidate the group’s two current sites and is expected to facilitate annual production capacity of around 300MW.

In addition, the company would seek the installation of an enlarged grid connection of up to 5MW, in order to be able to test larger scale electrolysers; strengthen the Group’s balance sheet, to assist in meeting tender requirements, in particular with regard to obtaining improved upfront payment terms from customers and suppliers; and move toward achieving positive cash flow and profitability within the medium term.

Application has been made for 73,396,225 New Ordinary Shares to be issued pursuant to the firm placing and open offer to be admitted on AIM, a sub-market of the London Stock Exchange. The shares are expected to be available from 8am GMT this morning.