Minesto has unveiled plans to raise a little over $12 million (SEK 103.5 million) through the upcoming shares and warrants issue to support further growth of its tidal energy activities.
The issue, expected to go forward from January 30, 2018, could bring in additional $7.7 million (SEK 64.7 million) to Minesto – amounting to the total of $20 million (SEK 168.2 million) before costs if all subscription options are exercised, the company informed.
According to Minesto, it has already received subscriptions from existing owners corresponding to approximately 10% of the issue.
In addition, the Swedish tidal energy developer said it received guarantees from an external group consisting of qualified investors for additional 60% of the share issue, thus securing commitments to 70% of the total share issue.
The money from the issue will be used mainly to finance the installation and testing of Minesto’s tidal energy technology in Holyhead Deep in Wales.
Also, Minesto said it plans to use the proceedings to fund further product development and new project demonstrations, as well as to grow its market opportunities in the UK, EU and Taiwan.
No more than 36,970,084 of shares, and 9,242,521 warrants will be issued, while the subscription for the units will be open until February 13, 2018, according to Minesto.
The share issue is expected to go forward after the general meeting with shareholders scheduled for January 24, 2018.