Invinity Energy Systems PLC (AIM:IES) said it has conditionally raised an aggregate amount of £21.5mln, before expenses, from its oversubscribed placing, which has now closed, and a share subscription, well above the minimum amount of £16mln initially indicated.
The company said gross proceeds of £19mln were raised through the placing of 59,375,000 new ordinary shares at the issue price of 32p each. Canaccord Genuity and VSA Capital acted as joint bookrunners in respect of the bookbuild placing.
The share subscription has conditionally raised £2.5mln through the subscription of 7,812,500 new ordinary shares at the same issue price. The issue price represents a discount of 13.51% to the company's closing middle market price of 37p per ordinary share on 22 February 2023.
After the market close on Wednesday, the AIM-listed leading global manufacturer of utility-grade energy storage announced its intention to conduct the conditional placing and share subscription.
In addition, the company is also offering all qualifying shareholders the opportunity to participate in an open offer at the issue price. The open offer will raise up to around £4mln, under which up to 12,500,000 new ordinary shares will be offered to existing shareholders at the issue price on the basis of 2 open offer shares for every 19 ordinary shares held
The company said proceeds from the proposed placing are expected to provide it with sufficient working capital to the end of June 2024 at which point the company expects to have launched its next-generation Vanadium Flow Battery (VFB).
Proceeds from the subscription and open offer will provide working capital beyond this period and would be used to further positively support the company's development and commercial activities, particularly in respect of the Mistral programme, it added.
The company said its directors will subscribe for new ordinary shares through the placing or open offer, which would raise gross proceeds of approximately £60,000 in aggregate.
Strategic investment By Everbrite
Invinity said it has agreed a strategic investment of £2.5mln by Everbrite Technology Co. Ltd into the company by way of the share subscription. Everbrite is a leading Taiwanese manufacturer of industrial technology.
The investment follows the 1 December 2022 announcement of a sale of Invinity battery products to Everdura Technology Co., a joint venture between Everbrite and Taiwanese clean energy company, Pronergy Technology Co. Ltd. Everbrite's investment in Invinity is intended to support a closer strategic relationship between the two companies in Taiwan and further afield.
The fundraising is conditional upon shareholders approving a resolution at the company's general meeting that will grant its directors the authority to allot the placing and open offer shares for cash on a non-pre-emptive basis.
Invinity also noted that as part of the company's review of ongoing sources of capital to fund additional growth it proposes to review the terms of the short-term and long-term warrants issued in 2021 with the intention of adjusting their exercise price and expiry period.
-- Adds placing and subscription result --