EnergyPathways PLC has announced that it has conditionally raised approximately £1,238,000 through a combination of a £594,000 placing and a £644,000 subscription.
The fundraising involves the issue of 20,633,329 new ordinary shares at 6 pence per share, representing a 1.3% discount to the prevailing market price. Each new share will carry one warrant, exercisable at 9 pence per share and expiring two years after admission. The warrants include an exercise accelerator clause that becomes effective if the company’s share price exceeds 12 pence.
In addition, the company has agreed to issue 636,000 new ordinary shares in lieu of commission, with warrants attached to 396,000 of these shares on a one warrant for every two commission shares basis.
Following admission, EnergyPathways will have 220,954,743 ordinary shares in issue.
The net proceeds from the fundraise will be used to support pre-development activities for the company’s MESH project.
Commenting on the Fundraise, CEO Ben Clube said:
“With this Fundraise, EnergyPathways is issuing a modest number of new ordinary shares principally to a select number of pre-existing long-term investors who are aligned with the Company’s long-term vision and business model. We are pleased to be strengthening the Company’s register by increasing the proportion of shares held by its long-term investors.
“The Fundraise provides funds for the Company to progress its flagship MESH project that has recently been recognised by the UK Government as having national significance.
There is growing appreciation across separate arms of Government of the national benefits that the MESH project can bring. Currently, billions of pounds are being wasted each year on unused wind power and this cost is set to grow rapidly. MESH has the potential to reduce these costs significantly. It would also provide the UK with an affordable source of low-carbon hydrogen production at scale and make the Company an early mover in the production of synthetic graphite, which is recognised as a critical mineral, being a raw material that will be indispensable for the UK and Europe’s green transition and defence industry. Furthermore, MESH offers an affordable large-scale gas storage facility ready to strengthen the UK’s energy security.
“Events continue to bring into sharp focus for the political class the importance of energy solutions that can reduce the burden of high energy bills on consumers while driving forward the transition to clean energy.
“The Company continues to evaluate its financing options. We are encouraged by the interest being shown from large scale clean energy funds and infrastructure investors.
Engage with us by asking questions, watching video summaries and seeing what other shareholders have to say. Navigate to our Interactive Investor website here: https://energypathways.uk/link/epJa9P.
