logo-loader

Helius Energy’s shares up after it announces plans to raise £6.6 million

Published: 14:46 05 Oct 2011 BST

no_picture_pai

Biomass power plant builder Helius Energy (LON:HEGY) announced this afternoon that it plans to raise £6.6 million via a share placing at 16 pence per share.

Helius’s shares responded by putting on 13.6 per cent in mid-afternoon trading to hit 15.9 pence.

Helius said that a fundraising at a premium to this morning’s share price demonstrated the company’s ability to attract investment from a number of high-quality new and existing institutional and other investors.

The funds will be used to strengthen Helius’s balance sheet and provide additional working capital to allow the company to progress its immediate and longer-term pipeline of projects, including seeking to secure: project-level funding for the firm’s Avonmouth power project; and planning consent for its Southampton project.

“We are pleased to have secured this significant capital investment in what are tough market conditions for financing,” said Adrian Bowles, Helius’s chief executive officer. “This placing clearly demonstrates that investors have confidence in Helius’s ability to develop high quality projects and the potential to realise value from its portfolio.”

Bowles continued: “We believe that biomass energy is becoming an increasingly important part of the UK’s energy mix. The capital raised allows us to continue to develop our pipeline of other projects which follows the achievement of financing Helius’s CoRDe Project in Scotland earlier this year.”

An application will be made to the London Stock Exchange for approximately 40.9 million shares to be admitted to trading on the Alternative Investment Market, and admission is expected to occur on 24 October.


FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

1 hour, 26 minutes ago