Quadrise PLC (AIM:QED) is now ‘fully funded’ for around the next eighteen months, at least, as the small-cap cleaner fuels company advances multiple opportunities from trial to commercialisation.
It confirmed on Friday morning that the firm’s equity raise was well-backed by investors, with the share sale both upsized and oversubscribed, securing some £4.5 million in a placing that had targeted £3 million.
Quadrise directors topped up the deal, raising a further £300,000, and retail investors are expected to chip in up to £1 million in a separate retail share offer, on the same terms.
Altogether, Quadrise may bring in £5.8 million of gross proceeds from the processes.
Shore Capital analyst Tom Fraine noted that whilst the equity raise was priced at a discount to Thursday’s closing price, it was still double the level seen in November, before the company’s AGM.
Since then, Quadrise has released several significant commercial updates that inspired confidence among investors.
Fraine also points out that Quadrise had sought to raise at least £3 million, which would be enough to support working capital resources to 30 June 2026, by which time projects with MSC, OCP, Valkor and Sparkle are expected to be generating commercial revenues.
“The additional proceeds raised will be used to accelerate product and business development activity, commit to equipment purchases (to allow for rapid deployment) and strengthen the balance sheet,” the analyst said in a note.
Proceeds from the funding are expected to allow Quadrise to maintain its strong momentum towards commerciality for its cleaner fuels products MSAR and BioMSAR, by allowing it to keep working on four key projects in parallel.
Currently advancing are the 3-way marine fuel vessel trials between Quadrise, MSC and Cargill, a power generator trial in Panama with partner Sparkle, engine testing of new prototype 100% biofuel fuels (bioMSAR Zero), and, in Utah, the Asphalt Ridge venture with Valkor.
Plus, a separate fuel trial is in the planning in Morocco, as a prerequisite to a commercial fuel supply deal.
With the injection of capital in place, Quadrise expects to be able to support each venture in parallel to bring each from trial to commerciality.
“The board believes that the net proceeds of the placing and subscription will provide Quadrise with working capital resources to June 2026, by which time projects with MSC, OCP, Valkor and Sparkle are expected to be generating commercial revenues subject to project milestones meeting currently anticipated timelines,” the company said in a statement, launching the fundraise after Thursday’s close.
Quadrise added: “The company's strategy is to generate demand amongst the shipping industry and to stimulate the supply of our fuels around global marine bunkering hubs.
“Our projects are designed to fulfil this strategy, with each now nearing a major milestone.
“Focus is on completion of the trials and agreements that will demonstrate MSAR and bioMSAR™ technology at commercial scale.”
Plainly, Quadrise has a lot on its plate in the coming months to drive toward commercialisation, investors who backed this week’s funding with be watching the stock closely.