Shares in Molecular Energies PLC (AIM:MEN, OTC:PPCGD) more than halved to a new all-time low after the company raised £500,000 at a big discount.
The energy company, formerly known as President Energy until it switched focus on the transition to alternative energy, offered new shares at 35p each, a substantial markdown to the 73.5p close yesterday in a placing primarily targeting institutional investors, but with retail shareholders still invited to participate.
The fundraising comes two weeks after Molecular Energies said it has received a first US$500,000 instalment of monies relating to the US$40 million sale of its Argentinian oil and gas business, President Energy Holding, to PLLG Investments in September.
It expects to receive another US$2 million cash payment from the sale of President in September this year, along with repayment of debt.
The proceeds of the fundraising are to provide working capital as the company looks to spin out its alternative energy division, Green House Capital Group PLC, via an initial public offer in 2024.
Green House is focused on innovative green technologies, with three main initiatives: Dual Fuel Limited, which is developing technology for diesel HGVs to use hydrogen-diesel blends, expecting first revenue in 2024; Aton 6, which focuses on carbon credit procurement and is already said to be generating revenues; and HYSO, which is creating biochar from biowaste for various industries and is set to start revenue generation in 2024.