Additional Funding Following Planning Consent for 500,000 TPA Altalto Immingham Waste to Fuel Site : £20m Fundraising Deal for Waste to Fuels Specialist Velocys

The sustainable fuels technology company Velocys, which has a number of projects turning waste into liquid fuels, has raised gross proceeds of £20 million by way of a Placing and Retail Offer.

A total of 400 million new ordinary shares in the capital of the Company will be issued to retail and institutional investors at a price of 5 pence per share (the ‘Offer Price’).

A total of 376,186,000 new ordinary shares (the "Placing Shares") have been conditionally placed with investors at the Offer Price by Numis Securities Ltd, Canaccord Genuity Limited and Turner Pope Investments Ltd.

Radnor Capital Partners Ltd. and Peat & Co acted as Selling Agents in relation to the Placing.

The Directors of the Company have subscribed for 1.2 million Placing Shares. In addition, retail and other investors have subscribed in the offer made by the Company via the PrimaryBid platform for a total of 22,614,000 new ordinary shares in the capital of the Company (the ‘Retail Shares’) at the Offer Price (the ‘Retail Offer’).

The Placing Shares and Retail Shares, when issued, will be fully paid and will rank pari passu (side by side) in all respects with the existing ordinary shares of the Company.

The company explained that the move follows a number of recent milestones, including:

Secretary of State for Transport, Grant Shapps MP, confirming support for Velocys at Government daily press conference. See further detail here.

Further Government funding from the Department for Transport under the Future Fuels for Flight and Waste Competition. See further detail here.

Planning permission granted for Altalto Immingham, UK’s first commercial waste-to-jet-fuel plant. See further detail here.

Henrik Wareborn, CEO of Velocys, commented:

"We are delighted with the support shown by both new and existing investors in this fundraising - we are particularly pleased to see a number of high-quality institutional investors join our shareholder register. The offering was upsized from £10 million to £20 million to help meet the additional demand but we are pleased to say that even at this higher level the issue was still significantly oversubscribed.

"We look forward to seeing our retail investors participate in the forthcoming Open Offer to the extent that they have not been able to already subscribe via the Retail Offer.

"This capital raise accelerates our ability to provide commercial scale turn-key solutions to fuel producers in the energy transition away from fossil fuels into sustainable fuels towards improved air quality and net zero carbon emissions."

Further details can be found HERE

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