European Green Transition PLC (AIM:EGT) conditionally raised £7.5 million in an upsized placing and subscription, giving the AIM company fresh capital to pay down bridge financing and accelerate expansion of its recently acquired wind services platform.
The raise, priced at 6p per share, comprises 125 million new shares and was increased from around £5 million after what the company described as significant investor demand.
EGT said the deal was oversubscribed and included the conversion of £1.5 million of bridge facilities into equity, a step that leaves the group targeting a debt-free position once the fundraise completes.
Net proceeds will go toward repaying the remaining cash element of the bridge facilities, strengthening the enlarged group’s balance sheet, supporting growth in its operations and maintenance business, and funding selective bolt-on acquisitions across critical infrastructure in the UK, Ireland and Europe.
Executive chair Cathal Friel said the backing from new and existing investors validated EGT’s recent acquisition of an EBITDA-profitable onshore wind turbine operations, maintenance, repair and remote monitoring business.
The company added that the fundraising also supports its medium-term goal of generating £50 million in group revenue and double-digit EBITDA margins.
The transaction remains subject to shareholder approval at a general meeting on 30 March, with admission of the new shares to AIM expected on 31 March.