(Alliance News) - Quadrise Fuels International PLC on Friday said its financial position is secured until June 2020 after it obtained GBP2 million of funding and is planning an open offer.
Shares in Quadrise, maker of heavy fuel oil alternative MSAR, were up 15% at 5.04 pence in morning trade in London.
The GBP2 million is the first tranche of a convertible securities issue and will be used to support business development toward "trial projects and commercial contracts". This is expected to secure its financial position into June next year.
The convertible securities issuance deed has been signed with Bergen Global Opportunity Fund LP and has a total subscription price of GBP4.0 million.
The firm is also planning a GBP1.5 million open offer of shares with attached warrants. The open offer shares will be priced at 3.96 pence per share and will have one open offer warrant for every two shares subscribed for.
Quadrise Executive Chair Mike Kirk said: "We are delighted that we have been able to secure the funds to enable Quadrise to build on the considerable momentum generated in 2019 and to progress the multiple opportunities announced during 2019 towards trial projects and commercial contracts. This includes, for example, the activities in Kuwait, Saudi Arabia, Europe and Morocco, alongside the upstream market initiative with Merlin Energy Resources that we announced on 14 August.
"Whilst we understand that this funding is more complex than a straight equity raise, it is, we believe, funding that is highly competitive when compared to an equity placing at the current share price, with the investment carrying no interest and being issued at a 7.5% discount, and the price at which Bergen is able to convert the convertible securities determined by reference to Quadrise's future share price performance."
