TPI provides its latest research note on Velocys plc (VLS.L).

Further to yesterday’s announcement of a proposed fundraise, this morning Velocys has detailed the results of its Placing and Retail Offer. A total of 400,000,000 new ordinary shares will be issued to retail and institutional investors at a price of 5p each, raising gross proceeds of £20m.

The original Offer of ‘a minimum of’ £10m met heavy investor oversubscription and was upsized to £20m with a view to satisfying the Company’s anticipated funding requirements going forward. Beyond this, Velocys now also proposes to raise up to a further £1 million by way of an open offer of up to 20,000,000 additional new ordinary shares to eligible shareholders at the same price.

Completion of the Placing, Retail Offer and Open Offer remains conditional (amongst other things) upon the passing of certain resolutions. A General Meeting will therefore be convened for this purpose at 10.30 a.m. on 14 July 2020. Further details, including the terms and conditions, will be made available separately in the circular to be published by the Company in connection with these actions.

Read More Velocysplc__25_June_2020__FINAL_BG.pdf

We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Velocys plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2020 Turner Pope Investments (TPI) Limited, all rights reserved.

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