ITM Power has announced its intention to raise £29.4m via a firm placing and open offer to support the delivery of its contract backlog and opportunity pipeline.
The UK-based company said it plans 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 want to raise up to £4.4m through an open offer of 10.9m New Ordinary Shares.
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.
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