Getech raises £6.25m for products and partnerships
Energy sector data and software company Getech has raised £6.25m, it announced on Friday, to invest in its products and develop its partnerships.
The AIM-traded firm said it had raised £6m through a conditional placing and subscription, issuing 27,272,728 shares in two tranches at a price of 22p each.
Additionally, it said it was launching an open offer to allow all qualifying shareholders to subscribe for new shares at the issue price, and to raise up to £0.25m before expenses on the basis of one new share for every 33 existing shares held as at 10 March.
It noted that the issue price of 22p represented a 12% discount to the closing mid-market price on 11 March.
The board said the net proceeds would be used to invest in the company’s core products and services, in a bid to add value to a range of commercial applications in the hydrogen, mining and geothermal sectors.
They would also be used to develop established partnerships that could add new content to existing products, and new customer solutions that were in development, as well as to take advantage of opportunities to leverage its offering through asset exposure, particularly in hydrogen.
It said the funds would also strengthen its balance sheet, allowing it to maintain its baseline of investment in its petroleum products and services and undertake a “broad and tax-efficient” programme of research and development innovation to identify and target additional areas of opportunity.
The company said it had exercised its option to acquire the entirety of H2 Green, which remained conditional only on the approval of shareholders at a general meeting, and the placing agreement not being terminated before then.
“We are delighted by the support we have received from new and existing shareholders,” said chief executive officer Jonathan Copus.
“The combination of a placing and subscription with institutional and other investors alongside an open offer both broadens our shareholder base while allowing all shareholders the opportunity to participate.
“We look forward to utilising the net proceeds to execute multiple growth opportunities, which we have identified through a methodical and balanced programme of business development.”
Copus said the company’s growth opportunities, with a particular focus on the hydrogen, mining and geothermal sectors, reflected the “changing shape” of the global primary energy mix.
“This energy transition is occurring at an accelerated pace, which places Getech's customers in a new commercial landscape - one that is underlain by a web of complex location-based decision making.
“Getech's products and services can add significant value to this landscape and we are excited by the commercial opportunity that lies ahead of us.”
At 1110 GMT, shares in Getech Groupm were up 1.4% at 25.35p.