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Aggregated Micro Power raises £5mln to further biomass hopes

The fundraise consists of a placing to raise £1.535 million at 66.5 pence and the issue of £3.47mln of convertible loan notes

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The group has bought three wood chip supply firms this year

Biomass boiler group Aggregated Micro Power Holdings plc  (LON:AMPH) is raising £5mln via a placing and subscription to fund its June acquisitions of two woodchip supply firms.

The fundraise consists of a placing to raise £1.535 million at 66.5 pence and the issue of £3.47mln of convertible loan notes (CLN) in the firm.

The CLN Issue includes subscriptions for notes by the sellers of Midlands Wood Fuel for a total of £2.31 million.

Midlands Wood Fuel was one firm acquired in June, the other was the customer base of  Cornwall-based Mi-Generation Ltd.

Aggregated chief executive Richard Burrell  told investors: "We are delighted to announce this fundraising together with the acquisitions of these two wood fuels businesses which follow the acquisition of Forest Fuels earlier this year.

"On completion of the acquisitions we will have a national presence in wood fuels offering both wood chip and wood pellet to end customers. The fundraising has been closed post the Brexit vote and we are confident of achieving further growth in our fuels and projects businesses throughout the UK."

The three firms provide Aggregated with a platform of regional, where it can seek new biomass boilers projects.

Midlands Wood Fuel turned over £3.2mln and made a profit of £170,000 in its last year, while Mi-Generation  generated sales of £1.89mln and profits of £294,000.

The considerations are £1.4mln plus £910,000 of debt for Midland Wood and up to £750,000 cash for Mi-Generation.

Aggregated said the UK heating market for wood chip boilers was benefiting from the renewable heat incentive (RHI) estimated by the firm to be 700,000 tonnes a year and the market for wood pellet boilers is estimated to be in excess of 450,000 tonnes per annum.

The firm expects both of these markets to grow by in excess of 5% a year and at present, it estimates that its enlarged pro-forma market share is in excess of 8% in both markets.

Quick facts: Aggregated Micro Power Holdings PLC

Price: 92 GBX

AIM:AMPH
Market: AIM
Market Cap: £58.32 m
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