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Ncondezi Energy buoyed by oversubscribed premium-priced placing

Published: 08:27 25 Nov 2020 GMT

Ncondezi Energy Ltd - Ncondezi Energy buoyed by oversubscribed premium-priced placing

Ncondezi Energy Ltd (LON:NCCL) said it has raised £750,000 from an oversubscribed and premium-priced share placing.

The group is issuing some 16.6mln new shares priced at 4.5p each, a premium price compared to the share’s 30-day weighted average price and the last equity raise in May 2020.

In Wednesday’s early deals Ncondezi shares gained around 7% to change hands at 5.25p.

The injection of funds is earmarked for general working capital purposes. Ncondezi said it will now have sufficient funds to cover corporate costs to complete the tariff negotiations with Electricidade de Moçambique and key agreements including the Power Purchase Agreement and Power Concession Agreement.

READ: Ncondezi’s Chinese partner provides US$1.8mln

"We are delighted with the result of this oversubscribed placing which puts the company in a strong financial position ahead of a transformational year as we progress the project towards financial close,” said Hanno Pengilly, Ncondezi chief executive in a statement.

“We look forward to providing further updates as we hit our milestones and continue to move the project forwards. We also look forward to progressing our C&I solar battery strategy in a way that does not impact our cashflows at the group level, the board will work in parallel on this and will update the market in due course."

Ncondezi director Scott Fletcher has subscribed for 1.77mln shares, worth a total of £80,000, as part of the placing and Pengilly has chosen to apply up to US$120,000 of any bonus due (for the years 2019 and 2020) to him to subscribe for shares.

The placing was arranged by stockbroker Novum Securities.

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