LONDON (Alliance News) - InfraStrata PLC shares plummeted Tuesday after the energy infrastructure developer said it has been unsuccessful in its attempt to gain EU funding for its Islandmagee gas storage project.
InfraStrata has also received notices of the exercise of warrants to subscribe for a total of 2.1 million shares at 0.48 pence per share.
Shares in InfraStrata were down 23% Tuesday afternoon at 1.00p each.
Following the exercise of these warrants, InfraStrata has warrants outstanding over 147.8 million shares, which represents about 13% of the company's issued share capital. The additional warrants are exercisable at the same price, 0.48p, with expiry dates in April 2021.
InfraStrata submitted a "grant for works" application to the EU under the Connecting Europe Facility grant for its underground natural gas storage facility at Islandmagee, on the east coast of County Antrim, Northern Ireland.
The company was unsuccessful but it plans to re-submit its proposal in the next round of funding in March.
"When submitting the EU 'grant for works' application we were aware that we were working against a tight timeframe in the cycle for raising the profile of our Islandmagee gas storage project with the relevant decision makers," said Chief Executive John Wood. "However, since the original submission we have continued to progress our case and are very well placed to resubmit our application in the next funding round."
InfraStrata said it has "never assumed" any assistance from the EU in its discussions with potential offtake, equity, debt and engineering, procurement & construction partners.
Wood added: "We continue to make progress on all fronts with the project and the fact that our conversations are not conditional on any further EU assistance bodes well for the future."
The company said its front end engineering design EU grant for the project is unaffected by the grants for works application.