Cogenpower to Raise USD0.7 Million in Private Placement of Shares

Published: Oct 06 2017
Deal Summary

Cogenpower PLC, a developer and owner of combined heat and power (CHP) plants, has announced a private placement of 220,000,000 shares, at a price of GBP0.0025 (USD0.0033) for gross proceeds of GBP0.55 million (USD0.72 million). The company intends to receive net proceeds of approximately GBP0.4 million (USD0.53 million).

Following the offering, the investors will, in aggregate, hold approximately 81.43% of the enlarged share capital. The offer price represents a discount of approximately 92.3% to the closing mid-market price of GBP0.0325 (USD0.043) per ordinary share on June 26, 2017.

Peterhouse Corporate Finance Limited is acting as broker whereas Beaumont Cornish Limited is acting as financial advisor to the company for the offering. Pursuant to the offering, the company has agreed to pay Peterhouse Corporate Finance commissions of 5% on all amounts introduced by them. In addition, the company has agreed to issue to Peterhouse Corporate Finance and the Beaumont Cornish warrants to subscribe for up to such number of new ordinary shares as is equal to 2% and 1% respectively of the enlarged share capital from time to time, exercisable at the placing price at any time in the period of three years following the re-trading.

The company intends to use the proceeds to settle outstanding creditors and for working capital purposes.

The offering is conditional on Company Voluntary Arrangement (CVA) approval, approval of the resolutions and re-trading.

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