Quadrise Fuels International plc (LON:QFI), the supplier of MSAR® and bioMSAR™ emulsion technology and fuels, which are low-cost, cleaner alternatives to heavy fuel oil, has announces its intention to conduct a placing of new ordinary shares of 1 pence each in the Company at a price of 2.7 pence per Placing Share to institutional and other investors to raise gross proceeds of £6.0 million.
In addition, and in recognition of the continuing support from long-term shareholders, the Company also announces that it will be providing existing Qualifying Shareholders with the opportunity to participate in an open offer of new Ordinary Shares in the Company at the Placing Price to raise additional gross proceeds of up to approximately £1.0 million. The Open Offer will be launched on conclusion of the Placing. The Placing Shares are not subject to clawback and will not be part of the Open Offer.
The total number of Placing Shares will not exceed 20 per cent. of the Company’s existing ordinary share capital.
The Placing will be conducted through an accelerated bookbuild which will be launched immediately following this announcement. The price at which the Placing Shares are to be placed will be 2.7 pence. The Placing is subject to the terms and conditions set out in Appendix 1 to this announcement.
Quadrise Fuels International intends to issue the Placing Shares by way of a non-pre-emptive cashbox placing. This structure has been chosen as it minimises cost, time to completion and use of management time at an important time for the Company and in the context of the Company having no current non pre-emptive share issuance authorities. The Board has consulted with the Company’s major shareholders, ahead of the release of this Announcement, who have endorsed this strategy.
Shore Capital Stockbrokers Limited is acting as sole bookrunner in connection with the Placing. Cenkos Securities plc is acting as nominated adviser to the Company.
