17 Oct 2014 14:53
17th October 2014
VELOCYS PLC
("Velocys" or "the Company")
Placing approved - over $100 million on balance sheet
Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids (GTL), is pleased to announce that all resolutions put to shareholders at today's general meeting relating to the £52 million equity placing, announced on 29 September 2014, were passed unanimously.
Following the general meeting, 23,111,111 new ordinary shares have been allotted to institutional and other investors at 225p per share, for which trading is expected to commence at 8 a.m. on 20 October 2014.
Roy Lipski, CEO of Velocys said:
"We are delighted by the overwhelming support from shareholders and the huge vote of confidence in Velocys from major institutional investors. Our vision for smaller scale GTL is becoming a commercial reality.
"There are many local opportunities for smaller scale GTL even with reducing gas-oil differentials at the major hubs. Over the next 24 months we will be focused on working with our partners to successfully deliver on Waste Management's Oklahoma plant, as well as securing final investment decision on the Ashtabula GTL plant and a number of other commercial projects in our pipeline of opportunities.
"With over $100 million of cash on the balance sheet, the unwavering support of major commercial partners and our first commercial plant under construction, Velocys is poised to emerge over the next couple of years in an even stronger market position."
The total number of ordinary shares with voting rights in issue following the placing will be 141,569,875. Velocys does not hold any ordinary shares in treasury. The figure of 141,569,875 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
- Ends -
For further information, please contact:
Velocys Roy Lipski, CEO Susan Robertson, CFO
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+1 713 275 5840 +44 1235 841 700
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Numis Securities (Nomad and Broker) Alex Ham / Tom Ballard - Corporate Broking Stuart Skinner / Jamie Lillywhite - Nominated Adviser
| +44 20 7260 1000 |
Camarco (financial communications) Billy Clegg / Georgia Mann
| +44 203 757 4983
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Lionsgate Communications (European PR) Jonathan Charles
| +44 203 697 1209
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Pierpont Communications (North American PR) Krystal Hewitt | +1 713 627 2223 |
Notes to editors
Velocys enables modular gas-to-liquids (GTL) plants to convert unconventional, remote and problem gas into valuable liquid fuels. Systems based on the Company's technology are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller fields than is possible with competing systems. Together with world-class partners, Velocys provides complete modular GTL solutions that address an untapped market of up to 25 million barrels of fuel a day.
Velocys plc is listed on the AIM market of the London Stock Exchange (LSE: VLS). The Company has over 100 employees with facilities in Houston, Texas, USA and near Oxford, UK and Columbus, Ohio, USA.
www.velocys.com