EnergyPathways Raises £743,692 Through Subscription by Existing Shareholders and Directors
Why we think this is very good
The RNS announcement indicates that EnergyPathways has successfully raised £743,692 through a subscription by existing shareholders and directors. This secured funding is a transformational event that is likely to be accretive to the company's financial position, positioning it to progress its MESH project. The participation of long-term investors and directors demonstrates their confidence in the company's strategic outlook and future growth potential.
Key Points
- EnergyPathways raises £743,692 through subscription by existing shareholders and directors
- Subscription results in issuance of 13,424,040 new ordinary shares at 5.54 pence per share
- Proceeds to fund pre-development activities on MESH project and provide additional working capital
- Participation of existing shareholders and directors shows confidence in company's strategic outlook
Summary
EnergyPathways (AIM: EPP) has raised £743,692 through a subscription offered to known long-term shareholders and directors of the company. The subscription results in the issuance of 13,424,040 new ordinary shares at a price of 5.54 pence per share, representing a 10% discount to the previous closing price.
The proceeds from the subscription will be used to fund pre-development activities on the company's MESH project's compressed air storage, hydrogen storage and natural gas storage developments, as well as provide additional working capital. This positions the MESH project to progress promptly to FID as soon as the company is awarded applicable licenses by government regulators.
The participation of existing shareholders and directors in the subscription demonstrates their confidence in the strategic outlook of the company and the likely direction of the UK's energy transition.