9 March 2020
Verditek PLC
("Verditek" or the "Company")
Subscription of Ordinary Shares to raise over £500,000
Verditek plc, (AIM:VDTK) the clean technology company is pleased to announce that it has raised £505,750 before expenses by way of a subscription of 20,230,000 ordinary shares of 0.04 pence each ("Ordinary Shares") at 2.5 pence per Ordinary Share (the "Issue Price") ("the Subscription Shares") (the "Subscription").
The Issue Price represents a premium of approximately 14% per cent to the closing mid-market price of Verditek's existing ordinary shares of 2.2 pence on 6th March 2020 (being the last business day prior to this Announcement).
The Subscription is not being underwritten and is conditional on admission of the Subscription Shares to trading on AIM. The Subscription is being conducted pursuant to the existing authorities granted to the Directors of the Company at its annual general meeting on 8 November 2019. The Subscription Shares represent approximately 8 per cent. of the Company's issued share capital as enlarged by the Subscription Shares.
Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM ("Admission") and it is expected that such Admission will occur at 8.00 a.m. on 13th March 2020. The Subscription Shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after the admission of the Subscription Shares, and will otherwise be identical to and rank on Admission pari passu in all respects with the existing Ordinary Shares. The Subscription Shares are not being made available to the public and are not being offered or sold into any jurisdiction where it would be unlawful to do so.
Following Admission, the Company will have 249,393,534 Ordinary Shares in issue, none of which will be held in treasury. Accordingly, shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
Related Party Transaction
Gavin Mayhew, as a director of the Company, is considered to be a "related party" as defined under the AIM Rules and has subscribed for 6,000,000 Ordinary Shares at the Issue Price, being an amount of £150,000. Accordingly, Gavin's participation in the Subscription constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules.
All the other directors of Verditek, who are independent to the Subscription, consider, having consulted with the Company's nominated adviser WH Ireland, that the terms of the Subscription are fair and reasonable insofar as the Company's shareholders are concerned.
Dr Geoff Nesbitt, CEO of Verditek, commented: "This successful round of funding will allow us to further develop the commercial opportunities we announced on the 28th of January. Specifically, our immediate priorities are focused on converting the product trials we have developed into sales contracts across the key market segments we are focused on.
Our factory is in production and we have the materials to weather logistics delays as a result of Covid-19 measures. We have taken steps to ship product early to ensure that we are ahead of schedule for the upcoming trials and installations.
In parallel we are developing new products and integrated solar solutions, as a result of customer requests, and in the process of upgrading of our production capabilities to meet demand.
In addition, the funds secured will be applied to funding the further development and commercialisation of our next generation Graphene Integrated Photovoltaic cell through our joint development program with Paragraf."
For further information, please contact:
Verditek plc
RH Lord David Willetts FRS (Non-Executive Chairman) +44 (0) 20 7129 1110
Dr Geoff Nesbitt (Chief Executive Officer) [email protected]
WH Ireland Limited (NOMAD and Broker)
Chris Hardie (Director, Corporate Finance) +44(0)207 220 1666
[email protected]
About Verditek plc
AIM listed Verditek plc is a holding company with three businesses operating within the clean technology sector. The Company is focused on commercializing our lightweight low-profile solar panel business. With manufacturing based in Lainate Italy, we have developed renewable power solutions for our customers, that drive solar energy into applications previously impossible. The exceptional properties of our solar panels replace diesel fuel in business such as perishable goods transport, off-grid telecommunication towers, electric vehicle charging stations, residential and holiday home power solutions and solar roofing for light-weight industrial roofing.
In addition to our current PV panels in production, we have partnered with an outstanding leader in graphene technology, Paragraf, and have created the worlds' first Graphene Integrated Photo Voltaic cell. We are working together to engineer the technology for commercialization.
Verditek provides compelling commercial solutions that make our customers business sustainable.
