EnergyPathways PLC (AIM:EPP), the energy transition business quoted on AIM, has raised £400,000 through a combination of a share placing and a subscription by its directors, as it continues to seek new sources of funding.
The company said on Tuesday it had raised £310,000 from a new investor via a placing, and £90,000 from directors and management through a subscription.
It explained that the funds raised will be used for working capital and confirmed that it is in 'active discussions' with a potential strategic investor for a larger financing package.
The shares were sold for 4.25p each, resulting in the issue of around 9.4 million new ordinary shares.
Investors in the fundraising will receive one warrant, which gives the right to buy more shares at a fixed price in the future, for every new share.
These warrants have an exercise price of 7p and can be used within two years of the new shares starting to trade.
Ben Clube, chief executive, subscribed for 729,411 shares, bringing his indirect holding to 11.4 million shares, or 5.83% of the enlarged company.
Other directors participating include Graeme Marks, Max Williams and Horacio Carvalho.
CEO Ben Clube told investors: "We are pleased to have completed this fundraise to bring in a select new long-term investor into the Company.
"Besides further strengthening the company's register, it is further recognition of the significant value potential of the company.
"The funds provide the company with near-term working capital as we progress through pre-FEED.
"Once again, Directors and management have participated in the fundraise, demonstrating our alignment with our shareholders. EnergyPathways is well placed to progress the various workstreams that are ongoing regarding our MESH Project."
MESH is the Marram Energy Storage Hub, and is one of a handful of new storage schemes intended to plug the gap.
It will sit 11 miles off the coast of Lancashire and is designed to function as a multi-technology underground battery.
If built as planned, it would store up to 20 terawatt-hours (TWh) of energy, about 7% of the UK’s annual electricity demand. The facility would combine three storage methods: natural gas, compressed air and hydrogen.