LONDON (Alliance News) - Hydrodec Group PLC said Thursday that shareholders took up 42% of the shares it offered in an open offer announced earlier in October.
Hydrodec shares were trading down 3.5% at 0.70 pence.
The company received acceptances for 1.6 million shares, raising GBP1.2 million. Earlier in the month, it had planned to issue 3.7 million shares to qualifying shareholders in the open offer at 75 pence to raise a maximum of GBP2.8 million.
At the time it announced the open offer, the oil re-refining group said it also planned to raise GBP10.0 million through a placing of 13.3 million shares at a price of 75p.
The placing and share offer followed a proposal to consolidate Hydrodec's shares on a 1-for-100 basis.
The consolidation and admission of the open offer shares are expected to take place on Friday, after being approved by shareholders at a general meeting on Thursday.
Proceeds from the share issue will go towards acquiring feedstock to improve supply levels, funding a research and development collaboration with Slicker Recycling, repay loans from reduce debt levels and working capital purposes, the company had said.