(Sharecast News) - Modular housing company Eco Buildings Group announced on Thursday that it had raised £0.83m to help expedite the production of its modular housing units.
The AIM-traded firm said the funds were raised via a subscription for 6,891,667 new shares, with support from existing shareholders and insiders including non-executive director and co-founder Dr Etrur Albani, and Andrew Allner, whose retirement as chairman was previously announced.
It said the subscription was finalised at a price of 12p per share, representing a 4.3% premium to the closing market price on 7 February.
Alongside the subscription shares, warrants over new shares would also be issued, with a three-year term and varying exercise prices over each 12-month period.
The board said the admission of the shares to trading on AIM was expected by 0800 GMT on 13 February.
Eco Buildings said the proceeds from the fundraising effort were earmarked to expedite the production of modular housing units, catering to the existing €114m order book over three years.
The company said it anticipated the first revenue influx to materialise in the current quarter, with ongoing revenue streams thereafter.
Additionally, funds would be allocated to support expansion into new geographic areas.
Dr Albani and Allner's participation in the fundraise constituted related party transactions under the AIM rules, but the independent directors, after consultation with its nominated advisor Spark Advisory Partners, said they had determined that the terms of their involvement were fair and reasonable for shareholders.
After admission, the total issued share capital of Eco Buildings Group would stand at 76,961,747 shares.
At 1333 GMT, shares in Eco Buildings Group were up 8.26% at 12.45p.
Reporting by Josh White for Sharecast.com.
Eco Buildings (ECOB)