80 Mile plc Expands into Biofuels with Strategic Acquisition

80 Mile plc Makes Strategic Moves in Biofuels Market

80 Mile plc ("80M" or the "Company") is on an exciting journey as it plots its course towards a future rich in sustainable energy. This exploration and production company has recently announced an ambitious plan to raise around £1.5 million by offering new ordinary shares. The primary goal of this fundraising effort is to secure a significant stake in Hydrogen Valley Ltd and its subsidiary, Greenswitch srl, paving the way for a powerful expansion into the rapidly evolving biofuels and industrial gases sectors.

Details of the Share Placement

Investors can expect the share placement to be priced at 0.27 pence per share, which reflects a 6.90% discount based on the closing price from a prior date. Notably, these new shares will represent approximately 15.96% of the enlarged share capital once the placement is completed.

Diversifying the Company’s Portfolio

This acquisition is a significant leap for 80 Mile as it aims to diversify its portfolio. The strategic move into biofuels includes production ventures in sustainable aviation fuels (SAF), glycerine, and green hydrogen. The Greenswitch facility, situated in Italy's Basilicata region, stands out with its impressive production capacity of 140,000 tonnes per year. Additionally, it is strategically located within a Special Economic Zone, which offers numerous economic advantages.

Importance of Due Diligence

It’s worth mentioning that the transaction hinges on thorough due diligence and the completion of necessary legal documentation. Should the acquisition not progress as planned, the funds raised will still serve the company’s operational needs and support other potential projects.

Transformative Potential of the Acquisition

Leading the charge, Eric Sondergaard, Managing Director of 80 Mile, has expressed strong confidence in the transformative impact of this acquisition. The integration of Hydrogen Valley and Greenswitch is anticipated to not only enhance production capabilities but also significantly increase revenue generation prospects, expected to begin in the early months of 2025.

Leadership and Future Initiatives

Robert Price, who will step into the role of CEO for the new industrial gas and petrochemical business unit, has articulated a clear vision. He aims to expand production capabilities while pioneering efforts to introduce SAF and green hydrogen to help tackle the pressing challenges associated with decarbonization in both aviation and heavy industry.

Greenswitch Project Timeline

Looking ahead, the Greenswitch project is set to resume production of ESO and biofuels by early 2025. There are plans to not only increase biodiesel output but also to secure government support for green hydrogen initiatives, effectively bolstering the company’s sustainable energy endeavors.

Potential for Increased Ownership

For those eyeing the future, it’s fascinating to note that the acquisition deal includes an option for 80 Mile to boost its interest to a full 100% stake within a 12 to 24-month period, which would require an additional investment of £6.05 million. This potential for increased ownership reflects a strong commitment to the evolving landscape of biofuels.

Frequently Asked Questions

What is the purpose of 80 Mile plc's recent fundraising?

The fundraising aims to support the acquisition of a significant interest in Hydrogen Valley Ltd and related biofuel projects.

What will the funds raised be used for?

The funds will primarily finance the acquisition, and if the acquisition doesn’t proceed, they will be allocated for working capital and other projects.

What production capabilities does the Greenswitch facility have?

The Greenswitch facility has a production capacity of up to 140,000 tonnes per year, focusing on biofuels and sustainable aviation fuels.

When is revenue generation expected to begin?

Revenue generation from the integration of Hydrogen Valley and Greenswitch is anticipated to start in the first quarter of 2025.

What expansion plans does 80 Mile plc have for the future?

The company plans to scale up biodiesel production and secure government grants supporting green hydrogen initiatives.

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