LONDON - DG Innovate plc (LSE: DGI), a company specializing in sustainable mobility and energy storage solutions, announced its intention to raise approximately £500,000 through a share placement. The advanced research and development firm plans to issue new ordinary shares to institutional investors at a price of 0.08 pence per share.
The fundraising effort is conducted via an accelerated bookbuild process launched today, with the goal of supporting a joint venture with EVage Automotive Pvt. Limited and providing ongoing working capital for the company. The net proceeds are expected to sustain the company's immediate financial needs until early February 2025.
The placement of approximately 625,000,000 new shares represents about 4.86 percent of the company's enlarged issued share capital. The issue price marks a 15.8 percent discount to the closing mid-market price of 0.095 pence per ordinary share as of the last business day before the announcement.
Admission of the new shares is contingent upon the conditions outlined in the placement agreement, which includes accurate company warranties and fulfillment of obligations by DG Innovate. The admission of the placement shares is expected to be effective on or around December 17, 2024.
Zeus Capital Limited is acting as the sole bookrunner for the placement. The company also plans to issue additional shares to satisfy the commission payable to the bookrunner, contingent upon a successful placement.
This strategic move comes after the company's previous announcements regarding its joint venture and funding activities. DG Innovate continues to engage in preliminary discussions for further funding solutions beyond the current placement.
The placement is not being underwritten, and a subsequent announcement will confirm the closure of the bookbuild and final details of the placement. This announcement is based on a press release statement.
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