The placing and open offer was arranged by Investec Bank plc and approved by the shareholders of ITM on 18 October 2017.
The proceeds of the placing and the open offer, approximately £29.4 million (before expenses), will be utilised to provide working capital to support the delivery of ITM’s contract backlog and opportunity pipeline; to move to new larger facilities to increase annual production capacity; to strengthen the group's balance sheet; and to move toward achieving positive cash flow and profitability within the medium term.
Commenting on the placing and open offer, Dr Graham Cooley, CEO of ITM Power plc, said: "We are delighted to disclose our £180 million opportunity pipeline of highly qualified tenders, which sits behind our growing backlog of contracted orders. This demonstrates significant traction for ITM Power's products and the growing momentum in the hydrogen energy market overall. The £25 million placing and £4.4 million open offer considerably strengthens our balance sheet and should provide enhanced confidence to our customers on ITM Power's ability to deliver future orders at increased scale. It should also enable us to unlock further efficiencies in our supply chain. We look forward to updating the market as opportunities are converted from pipeline to contracted sales, as we near our target of positive cashflow generation."
Corporate partner Mark Shepherd led the Burges Salmon team, he comments: “We have worked with ITM for many years now and throughout that time we have seen just how exciting a company it is. Its continued growth and enormous potential is deservedly reflected in the demand from investors under the placing and the oversubscription of the open offer. We are delighted to work with ITM and look forward with great enthusiasm to ITM going from strength to strength following this very successful fundraising.”
Corporate team partner Mark Shepherd, senior associate Mark Cook, associate Matthew Brace and solicitor Martin Davidson advised ITM Power on the fundraising.