EnergyPathways PLC (AIM:EPP) shares climbed in Monday's trade after it announced a new £1.24 million equity raise to enable pre-development work at its MESH project, which was recently designated by the UK government as a project of national significance.
The raise comprises £594,000 from a placing and £644,000 from a subscription, with new shares priced at 6p.“With this fundraise, EnergyPathways is issuing a modest number of new ordinary shares principally to a small number of pre-existing long-term investors who are aligned with the company’s long-term vision," said chief executive Ben Clube.
"The fundraise provides funds for the company to progress its flagship MESH project that has recently been recognised by the UK Government as having national significance.”
Proceeds will support technical and commercial studies across several MESH components, including long-duration energy storage, hydrogen and graphite production, and large-scale gas storage and extraction.
"There is growing appreciation across separate arms of Government of the national benefits that the MESH project can bring. Currently, billions of pounds are being wasted each year on unused wind power and this cost is set to grow rapidly. MESH has the potential to reduce these costs significantly," Clube added.
"The company continues to evaluate its financing options. We are encouraged by the interest being shown from large scale clean energy funds and infrastructure investors."
In London, EnergyPathways shares were up 11.6%, changing hands at 6.79p.