Powerhouse Energy Group PLC (AIM:PHE) has raised £1.25 million to support the company's ongoing research and development efforts and project expansion.
It's raising funds through a placing and retail offer, selling new shares priced at 0.5p per share.
"This placing comes at an opportune time for PHE, as the company enhances its commercial offerings, and will help take PHE forward into new agreements,” chief executive Paul Emmitt said in a statement.
“The net funds will be applied to sensibly and constructively ensure PHE continues on its journey towards full commercial scale DMGs and looks to generate additional revenue streams through innovation whilst also consolidating our staff and technology into one location."
PHE chair David Hitchcock, meanwhile, added: "We are delighted with the response we have received during this placing.
“The ability to raise these funds demonstrates faith in the company's progress and further enables the company to progress its current project pipeline whilst also sourcing and delivering new projects.
“We welcome our new investors to the business and look forward to providing further updates in due course."
Trading of the new shares on AIM is expected to commence on 28 March.
Specifically, the proceeds are earmarked for work at the Ballymena site (£350,000), developing an engineering package in Australia (£50,000), work on alternative DMG technology outputs, such as sustainable aviation fuel (£150,000), and supporting Engsolve's engineering expansion (£150,000). Some £550,000 is expected to be used as working capital.