Velocys Placing and Open Offer to Raise Up to GBP27 Mln for Growth

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by Joe Hope

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Velocity plc said on Thursday it will raise up to approximately £27 million ($36 million) in a proposed conditional placement with institutional investors and make an open offer to fuel its growth.

The fuel-technology company said it has placed shares with institutional investors at around 8 pence per share, to raise approximately GBP25 million. The price represents an 8.6% discount on the company’s closing mid-market share price on Wednesday and a 14% discount on its closing price on Thursday.

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Eligible shareholders can subscribe for the shares in the open offer at the placing price, which can raise up to GBP2.0 million. Eligible shareholders can subscribe to two open offer shares for every 85 shares held in Veloci.

Net proceeds will be invested in the company’s growth, with the goal of achieving its goal of net positive cash flow in 2024.

The proposed fundraising is conditional on shareholder approval. The shares are expected to be admitted to trading around December 16.

Panmure is acting as the company’s designated advisor and joint broker with Gordon Shore Capital Group plc.

Write to Joe Hope at [email protected]

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