Eco Buildings Group PLC (AIM:ECOB, FRA:9ZL0), the modular construction company, has conditionally raised £2.35 million through a placing and subscription of new shares at 12p each.
The fundraising, arranged through broker Tavira Financial, comprises 18.33 million placing shares and 1.25 million subscription shares.
Net proceeds of £2.2 million will be used to install a second glass fibre reinforced gypsum (GFRG) manufacturing line at the company's factory in Albania and for general working capital.
The new production line is expected to be installed within three to four months and to become operational immediately thereafter, allowing Eco Buildings to execute on what it described as an increasing order book in the country.
The expansion follows a recent announcement regarding work with the Balfin Group, one of the largest investment groups in Albania.
Placees will receive one warrant for every two shares subscribed, exercisable at 22p for two years from admission, while broker Tavira will receive 1.1 million warrants exercisable at the 12p placing price over the same period.
The investment round is conditional on shareholder approval at a general meeting scheduled for 4 June at the company's London offices.
Directors who hold shares in the company intend to vote in favour of the resolutions, with their combined holdings amounting to 17.64 million ordinary shares, or approximately 14.5% of the existing issued share capital.
If approved, the new shares are expected to be admitted to trading on AIM on or around 5 June.
Following admission, the company's total issued share capital will rise to 140.99 million ordinary shares, representing significant dilution for existing holders.
The placing price of 12p includes a discount to the company's recent trading range, with the warrant exercise price of 22p offering placees additional upside if the shares recover.
Eco Buildings specialises in modular construction using GFRG panels, a lightweight building material that can be manufactured at scale and assembled on site, offering cost and time advantages over traditional construction methods.
The company has been building its presence in the Albanian market, where demand for affordable, rapidly deployable housing and commercial buildings has been growing.