LONDON (Alliance News) - Torotrak PLC on Tuesday said it will raise GBP13.8 million via a firm placing, a placing and open offer, and a subscription deal with Allison Transmission Inc.
Torotrak, which makes emissions reduction and fuel efficiency technology for vehicles, will issue 128.6 million shares under the firm placing, 69.1 million shares under the placing and open offer, and 21.4 million shares under the Allison Transmission subscription. All the shares will be issued at 7 pence per share, a slight discount to its 7.68 pence closing price on Monday. Shares in Torotrak were down 5.9% to 7.2 pence on Tuesday.
The proceeds from the issue will be used to finance the production and commercialisation of Torotrak's KERS technology, back the development of its V-Charge technology and boost other technology development at the company.
Torotrak also published its results for the year to the end of March on Tuesday, posting a widened pretax loss of GBP8.4 million, compared to GBP4.7 million a year earlier, as revenue rose to GBP3.8 million from GBP3.5 million. The loss was driven by higher spending on the company's technology portfolio and lower licensing revenue in the year.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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