Green jet fuel refinery developer Velocys aims to raise £ 25million with a new share issue to speed up delivery of its technology.
A conditional placement project with institutional investors has been announced, to enable the company to accelerate its growth with a view to achieving positive cash flow by 2024.
It will be used to finance the advance of its two proposed plants, Altalto Immingham and Bayou Fuels in Mississippi, bringing them “to the point of securing external investment in the detailed engineering phase.”
Read more: Significant first revenues for green jet fuel refinery developer Velocys
He also plans to use the proceeds as partial payment to ensure control of the site for which he has a building permit on the South Humber Bank in Stallingborough, as well as general working capital requirements over the next two years and the setting aside funds to support the process. guarantees and equipment guarantees to customers.
An accelerated bookbuilding process began at the close of trading on Thursday, November 25, with a place price of 8 pence per share – an 8.6% discount from the closing price of 8.75 pence on Wednesday.
Subject to a successful close, an additional £ 2million will be sought with the release of 25million shares open to eligible shareholders.
Fundraising is conditional on resolutions being passed at a meeting next month.
It comes after obtaining off-take agreements for the full capacity of the US plant earlier this month.