ITM Power plc (LON:ITM) saw its shares gain over 10% after the firm said it is looking to raise a total of around £29.4mln via a share placing and open offer to provide working capital to support delivery of its contract backlog and opportunity pipeline.
In a statement, the AIM-listed clean fuel firm said it intends to raise £25mln, before expenses, through a placing of 62.5mln new ordinary shares with certain existing and new institutional investors at a price of 40p per share. In late afternoon trading, ITM shares were 10.6%, or 4.5p higher at 46.75p.
READ: ITM Power's annual results chart a year of significant commercial progress
In addition the company intends to raise up to around £4.4mln through an open offer of about 10.896mln new ordinary shares on the basis of one open-offer share for every 23 existing ordinary shares owned.
Graham Cooley, ITM Power’s chief executive officer said: "We are delighted to disclose our c.£180 million opportunity pipeline of highly qualified tenders, which sits behind our growing backlog of contracted orders.
“This demonstrates significant traction for ITM Power's products and the growing momentum in the hydrogen energy market overall.”
READ: ITM Power's annual results chart a year of significant commercial progress
He added: “The £25 million placing and up to c.£4.4 million open offer considerably strengthens our balance sheet and should provide enhanced confidence to our customers on ITM Power's ability to deliver future orders at increased scale. It should also enable us to unlock further efficiencies in our supply chain.
“We look forward to updating the market as opportunities are converted from pipeline to contracted sales, as we near our target of positive cashflow generation."
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