Ceres Power proposing raising 9.7m pounds through placing

Alternative energy company Ceres Power, is proposing to undertake a placing and open offer to raise up to approximately 9.7m pounds.

Alternative energy company Ceres Power, is proposing to undertake a placing and open offer to raise up to approximately 9.7m pounds.

This represents approximately £9.5m net of expenses in aggregate through the issue of up to 120.9m new ordinary shares in aggregate at 8.0p per new ordinary share.

Some 108.5m new ordinary shares are to be issued through the placing to raise approximately £8.7m. Up to 12.5m new ordinary shares are to be issued through the open offer to raise up to approximately £1.0m assuming full take up of the open offer.

The company said that neither the placing nor the open offer are underwritten.

The issue price represents a discount of 0.2% to the mid-market closing price on March 8th 2013.

A statement issued by the company said: "The directors believe that the proceeds of the fundraise will provide sufficient capital to take Ceres through the next stage of OEM[[Original Equipment Manufacturers]engagements and that, following the deployment of these funds, the Ceres core cell and Fuel Cell Module (FCM) technology platform will be proven to be suitable for product development programes with several OEMs in multiple geographies.

"The board expects that Ceres will be able to generate revenues from a combination of development licences, on-going fees for services and royalties on OEM sales of mass market products incorporating the Ceres technology in due course."

The announcement is in line with the group's previously stated strategy.

In December 2012, Ceres announced that it had raised £3.3m before expenses via a firm placing and placing and open offer in conjunction with a restructuring of the business and the adoption of a new business strategy for the group.

In February 2013, it reported that it had completed the restructuring phase and that operating costs had been significantly reduced.

It said that the new strategy was to exploit its core cell and Fuel Cell Module technology platform across a broad range of product and market applications by partnering with multiple OEMs to embed the company's core cell and FCM technology in multiple product platforms.

MF

Recommended

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Fan heater vs oil heater – which is cheaper?
Personal finance

Fan heater vs oil heater – which is cheaper?

Sales of portable heaters have soared, as households look to cut their energy costs. But which is better: a fan heater or an oil heater? We put them t…
21 Nov 2022
Stock market crash? This time it’s (slightly) different
Stockmarkets

Stock market crash? This time it’s (slightly) different

The bears expecting a stock market crash have got it wrong, says Max King.
30 Nov 2022
Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022