Clean Power Hydrogen Initiates £6.3 Million Capital Increase

Clean Power Hydrogen's Exciting Fundraising Initiative

Clean Power Hydrogen plc (CPH2), a pioneering developer in green hydrogen technology, has made headlines with its announcement regarding a significant capital raise totaling £6.3 million. This endeavor will be facilitated through a unique combination of placing and subscription of new ordinary shares alongside a retail offer that aims to gather up to an additional £0.3 million. The shares will be offered at an issue price of 7.5 pence each, indicating a strategic move towards ensuring adequate funds for ongoing projects.

Strategic Goals and Key Milestones

This capital raise is essential as Clean Power Hydrogen sets its sights on a range of critical milestones. The company has developed an innovative Membrane-Free Electrolyser (MFE) technology that stands to revolutionize the green hydrogen industry. The primary goals include deploying the initial MFE110 electrolyser unit at Northern Ireland Water (NIW), completing the design of the 1MW MFE220 commercial unit, and successfully conducting the Factory Acceptance Test (FAT) for the first MFE220 commercial unit. Achieving these targets will significantly enhance the company’s operational footprint and boost its market presence.

The Retail Offer and Shareholder Engagement

The placement and subscription plan are structured to move forward regardless of the outcomes of the retail offer. This aspect guarantees that existing shareholders who haven’t engaged in the initial placement or subscription will have the opportunity to subscribe for new shares. The retail offer is set to be conducted via the Bookbuild platform, with specific details to be shared separately, fostering a transparent approach for all stakeholders involved.

Shareholder Approval and Market Implications

A crucial general meeting has been arranged to seek shareholder approval for the fundraising initiative. While the date for this meeting awaits confirmation, anticipated results will be communicated through the company's website. Should shareholders approve the move, the newly issued shares are planned to commence trading on the London Stock Exchange's AIM market shortly thereafter, marking a significant milestone in the company's journey.

Impact of New Shares on Share Capital

The anticipated new shares will be fully paid and will share equal rank with the existing ordinary shares of the company. If everything goes according to plan, these shares are expected to represent approximately 23.75% of CPH2's issued ordinary share capital post-admission. This significant issuance is a clear indicator of the company’s commitment to expanding its operational landscape.

Pricing Strategy and Board Support

The pricing of this issue reflects a strategic decision, with a 4.5% discount applied to the closing mid-market price just prior to the announcement. Notably, several members of Clean Power Hydrogen's board and management team have shown their commitment by expressing intentions to subscribe for shares totaling around £0.56 million. This level of internal investment signifies strong confidence in the company's prospects among those who know it best.

Future Prospects and Growth Strategies

Jon Duffy, the CEO of Clean Power Hydrogen, has openly expressed optimism regarding shareholder support and the prospect of attracting new investors. The raised funds are expected not only to facilitate the commercialization of the MFE220 but also to empower the company’s sustainable growth initiatives. Moreover, this fundraising move is part of a larger strategic plan to scale manufacturing capabilities while activating licensees over the upcoming 18 months.

Exploring Additional Investment Opportunities

In addition to the capital raise through share issuance, Clean Power Hydrogen is actively exploring other investment avenues. This includes looking into strategic partnerships and non-dilutive funding sources that would enable the company to pursue its objectives while safeguarding its strategic aspirations. By diversifying its funding sources, CPH2 aims to position itself favorably within the rapidly evolving green hydrogen market.

Frequently Asked Questions

What is Clean Power Hydrogen planning to achieve with the capital raise?

The capital raise will support Clean Power Hydrogen in funding its key projects, including launching its electrolyser units and scaling manufacturing capabilities.

How much is Clean Power Hydrogen aiming to raise?

Clean Power Hydrogen is looking to raise £6.3 million through a combined placement and retail offer.

When will the new shares start trading?

If approved, the new shares are expected to start trading shortly after shareholder approval, indicative of a proactive market entry.

What type of technology does Clean Power Hydrogen develop?

Clean Power Hydrogen specializes in green hydrogen technology, particularly its Membrane-Free Electrolyser (MFE) systems.

How does the company's board’s participation impact confidence?

The involvement of the board in subscribing for shares reinforces confidence in Clean Power Hydrogen's future success and strategic direction.

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