LONDON: Verditek plc, the international clean technology company, is carrying out a placing to raise approximately up to £3.5 million via the issue of up to 43.75 million new Ordinary Shares at the issue price of 8 pence per share.
The Company has entered into a placing agreement with WH Ireland Limited (WH Ireland) in connection with the Placing. WH Ireland is acting as sole broker in relation to the Placing.
Since June 2020, Verditek has received multiple commercial orders. To date, the Company has received EUR 2.6 million of orders (c.2MW) and projects have been delivered to multiple countries (Pakistan, Libya, UK, Thailand, Philippines and Australia).
The net proceeds of the Placing will be used to primarily provide working capital for the Verditek plc to fund the cash lag between purchase of raw materials and sales receipts as production ramps up and to strengthen the balance sheet.
Since updating the market in early September the Company has continued to pursue an increasing range of opportunities as well as fulfilling orders already received.
The manufacturing plant in Lainate is steadily improving production capability. The global pandemic and the remoteness of some of the end users has created challenges on the delivery and payment of orders.
For example, the order to supply a South American mining company announced in mid-July has extended beyond the September shipment date previously announced but the Directors still expect to ship the existing stock against payment in the near term. Other orders have been successfully delivered and billed.
The Placing Shares, when issued, will be fully paid and will rank pari passu in all respects with the Existing Ordinary Shares including the right to receive dividends and distributions declared following Admission.
Application will be made for the Placing Shares to be admitted to trading on the AIM market (AIM) of London Stock Exchange plc.