ITM Power, a clean fuel firm based in Sheffield, wants to fund its growth, and they are planning to do this by raising up to £9m through share issues. The company develops and sells electrolyster technology to turn electricity into hydrogen gas. The company already raised £5m by issuing 10 million new ordinary shares at 50p per share to institutional investors and non-executive director Peter Hargreaves. Via an open offer, they want to issue another eight million shares. This could take the total money raised to around £8.9m.
Non-executive chairman of ITM Power, Roger Putnam, said that this is a crucial time for the development of the company. It’s important for the company to have a strong balance sheet so the on-going commercial relationships can be supported and stay supported. He said that he was very delighted that Peter Hargreaves, the existing institutional shareholders, and some new institutions showed their commitment to the company in this funding round.
Since the first pack of issued shares was just for the institutional investors, the board felt like this is unfair for the existing shareholders. That’s why they are making an open offer of shares to the existing shareholders at the same price at the offer of shares to the institutional investors. The existing shareholders need this opportunity to keep participating alongside the institutional shareholders.
Yesterday, the company also revealed its annual results. This year it includes the first significant revenue of £480.000. The company says that their outlook is positive with early revenue streams developing.
Professor Putnam said that ITM power has successfully positioned itself from a platform of commercially launched electrolyster products. Now they can address the clear opportunities within energy storage and clean fuel generation from renewable power to help build a greener environment and Smart Cities within the UK.
ITM Power is now also at the heart of two initiatives that will define the deployment of hydrogen fuel and energy systems in the UK, UKH2Mobility and Ecoisland.
They came to this point by working so hard to develop and build key relationships. The Technology Strategy Board granted a £1.3m grant to ITM Power to fund a hydrogen
storage and vehicle refueling system on the
Isle of Wight, part of the project called Ecoisland. And as a member of UKH2Mobility, ITM Power helps to ensure that the UK is well positioned for the commercial roll-out of hydrogen fuel cell electric vehicles.