Green jet fuel refinery developer Velocys is aiming to raise £25 million with a new share issue to accelerate delivery of its technology.
A proposed conditional placing with institutional investors has been announced, to enable the company to scale growth with a view to achieving positive cash flows by 2024.
It will be used to fund the advance of both its proposed plants, Altalto Immingham and Bayou Fuels in Mississippi, taking them “to the point of securing external investment into the detailed engineering stage”.
Read more: First significant revenues pour in for green jet fuel refinery developer Velocys
It also plans to use proceeds as part-payment to secure control of the site it has planning consent for on the South Humber Bank at Stallingborough, as well as general working capital needs over the next two years and the setting aside of funds to back process guarantees and equipment warranties to clients.
An accelerated bookbuilding process began at the close of trading on Thursday, November 25, with a placing price of 8p per share - a discount of 8.6 per cent on the closing mid-market price of 8.75p on Wednesday.
Subject to a successful closure, a further £2 million will be sought with the release of 25 million open offershares to eligible shareholders.
The fundraising is conditional on resolutions being passed at a meeting next month.
It comes after it secured offtake agreements for the full capacity of the US plant earlier this month.
