News

Fundraise of £7M. Project co-funding by BA & Shell of £2.8M

15 Jul 2019

Velocys plc (VLS.L), the renewable fuels technology company, is pleased to announce that it has secured £7 million (gross) by way of a Placing.

Highlights:

  • Fund raising of £7 million (before expenses):
  • Placing of 233,333,335 New Ordinary Shares (the “Placing Shares”) at a placing price of 3 pence per share (the “Placing Price”) (the “Placing”) by certain existing shareholders and new institutional investors
  • Net proceeds of the Placing will be used predominantly: (i) to complete the development capital fund raising and initial stages of development of the Front End Engineering Design (FEED) for the Mississippi Biorefinery Project; (ii) to strengthen and extend the Company’s intellectual property portfolio; (iii) for working capital and central costs; and (iv) on analysing and testing catalyst and Fischer-Tropsch reactors from the recently completed full scale demonstration run in Oklahoma
  • The Placing complements commitments received by the Company from the Altalto Immingham waste-to-sustainable-fuels project’s strategic partners, British Airways and Shell, of £2.8 million in total.

 Henrik Wareborn, CEO of Velocys, said:

“I am delighted with the level of support Velocys has received from existing and new institutional investors. This complements the commitments by Shell and British Airways to co-fund the remaining pre-FEED project work to bring the Altalto Immingham biorefinery project to the same state of pre-FEED completion as our Bayou Fuels project in Mississippi. As a result we can provide strategic partners with two truly sustainable fuel projects, and a solution that can be deployed widely to decarbonise aviation and heavy goods transport.”

The Placing

The Company has proposed a fundraise of approximately £7 million, before expenses, by way of a conditional, non-pre-emptive placing of 233,333,335 Placing Shares at the Placing Price. The Placing has been arranged by Numis Securities Limited, Canaccord Genuity Group and Peat & Co and is not being underwritten.

The Placing is conditional (amongst other things) upon the passing of certain resolutions. A General Meeting is being convened for the purpose of considering the relevant resolutions at 10.30 a.m. on 31st July 2019 at the offices of Mayer Brown International LLP, 201 Bishopsgate, London, EC2M 3AF.

Detailed terms and conditions applicable to the Placing are provided in the appendix to this announcement.

– Ends –

Notes to editors

Velocys is a sustainable fuels technology company. Originally a spin-out from Oxford University, in 2008 the Company acquired a US company based on complementary technology developed at the Pacific Northwest National Laboratory. Over 15 years Velocys has developed proprietary Fischer-Tropsch technology that enables the production of drop-in transport fuels from a variety of waste materials. Having demonstrated its technology at commercial scale, the Company is currently developing projects in Natchez, Mississippi, USA and Immingham, UK to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport.

For further information, please contact:

Velocys
Henrik Wareborn, CEO
+44 1235 838 621

Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard
+44 20 7260 1000

Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
James Asensio
+44 20 7523 8000

Camarco (Financial communications & PR)
Billy Clegg
Tom Huddart
+44 20 3757 4983

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) (“MAR”) prior to its release as part of this announcement. In addition, market soundings (as defined in MAR) were taken in respect of the Placing with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.

IMPORTANT NOTICES (Link to PDF)