Shares in the specialist provider of distributed heat, power and renewable fuels closed at 110p on Friday.
Once it has the cash from the share issue, it intends to issue the call notice in respect of the £10.01mln outstanding fixed rate secured 8% series I and series II convertible loan notes, due for redemption in 2021.
Directors and management of the company currently hold, in aggregate, £2.22mln of the convertible loan notes and have committed to convert their notes into shares, which leaves around £7.79mln of loan notes that could be redeemed, on top of which there will be accrued interest of around £130,000 that will have to be paid to the noteholders.
It is entirely possible that some note-holders will follow the example of the company’s executives and convert their notes into shares, in which case, the money raised from this will be used, in order of priority, as follows:
- Fuels business working capital and investment in growth (including fees) - £5,000,000
- Urban Reserve - £3,000,000
- Service & Maintenance business expansion - £500,000
"We are delighted and very grateful for the support shown by our existing and new shareholders in difficult market conditions. The proceeds from the placing will enable us to simplify our balance sheet structure and provide working capital to accelerate our growth," said Richard Burrell, the chief executive of Aggregated Power.
The company said it continues to trade in line with expectations. In the five months to the end of August, the company had unaudited revenue of £14.5mln, which is ahead of the corresponding period of 2018.