Gelion PLC (AIM:GELN), the AIM-listed battery developer, has announced plans to raise up to £10.5 million through a share placing, subscription and retail offer as it pushes to bring its next-generation sulfur battery technology closer to market.
The fundraising will see up to 52.5 million new shares issued at 20p each, an 18% discount to Wednesday’s closing price of 24.5p.
Most of the proceeds, around £10 million, will come from institutional investors via a placing and subscription, with up to £500,000 open to retail investors through the Winterflood Retail Access Platform.
Chief executive John Wood said the fresh capital would help the company “convert its strong position in battery technology innovation to commercial success”.
He added: “Our plan is to move quickly, following a capital-light path focused on our core areas of differentiation, and to work with partners to deliver breakthrough collaboration and global leadership for Gelion’s remarkable sulfur battery technologies.”
The money raised will support several key projects, including the development of commercial pouch cell prototypes with a leading battery manufacturer, completion of a prototype project with defence contractor QinetiQ, and the growth of a new sales integration unit.
Funds will also strengthen the company’s balance sheet and provide working capital.
The fundraising follows a series of technical milestones for Gelion this year, including a multi-year collaboration with a major Asian battery manufacturer to develop commercial-scale prototypes, and government-backed projects to advance its lithium-sulfur and recycling technologies.
Founded in 2015 by University of Sydney professor Thomas Maschmeyer, Gelion has built a reputation for innovation in sulfur-based and zinc-bromide energy storage.
Its sulfur cathode materials are designed as a “drop-in” replacement for expensive metals like nickel and cobalt, making them cheaper and more environmentally sustainable while compatible with existing large-scale battery manufacturing.
Management and board members plan to invest about £230,000 of their own money in the share issue. The company said it had already received strong indicative support from investors, although the placing is not underwritten.
Trading in the new shares on AIM is expected to begin on 7 November, subject to shareholder approval at a general meeting to be called shortly.