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LONDON (Alliance News) - Ceres Power Holdings PLC Friday said it has raised roughly GBP20.0 million though an oversubscribed placing of 235.7 million shares at 8.5 pence per share.
The fuel cell technology company said the placing was to existing and new institutional investors, and is conditional upon resolutions being passed at a general meeting on July 30.
"This level of funding recognises the significant progress the company has made over the past year and is an endorsement of the management team and its strategy for the company. We are especially delighted with the quality of investors that we have attracted to the register," Chairman Alan Aubrey said in a statement.
The company wants to take advantage of the growing natural gas market by offering fuel cell technologies, which are generally believed to be the most efficient way to generate electricity from natural gas.
Ceres said that it will use the funds to develop its operations, support its product creation and provide it with the flexibility to increase manufacturing volumes at its Horsham facility in the UK. It said that, coupled with the cash which the company already holds, the proceeds will provide enough capital for substantial commercial and technical progress well into 2016.
"This funding will enable the company to advance the development and commercialisation of our low-cost Steel Cell technology across different markets and applications, with our world class partners," Chief Executive Phil Caldwell said in a statement.
London-listed intellectual property based investment company IP Group PLC has interests in Ceres Power and said on Friday that the oversubscribed placing shows the strength of Ceres' ongoing development strategy.
"This level of funding recognises the significant progress the company has made over the past year and is an endorsement of the management team and its strategy for the company," IP Group Chief Executive Alan Aubrey said in a statement. "We are especially delighted with the quality of investors that we have attracted to the register."
Ceres Power shares were down 5.2% to 9.12 pence while IP Group shares were up 0.4% to 194.24 pence on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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