Vphase Plc (LON:VPHA), the company behind energy saving products for residential and commercial properties, has raised £2m in a placing of 100m new shares with institutional investors priced at 2.0p per share. VPhase has developed a system that lowers and regulates the level of electrical voltage in a home, typically to 220V, which reduces energy consumption, reduces waste and saves money. The funds will be used to accelerate the company's commercial development within the UK and other geographical territories, and for general working capital purposes.

The company said it planned to begin a campaign to increase consumer awareness, including TV advertising, increased promotion to utilities, social housing groups and independent electricians and additional resource to manage the increasing number of overseas enquiries that the group is receiving. It added that strengthening its cash position and balance sheet would be viewed positively by the parties with which it is seeking to enter into commercial arrangements.

Rick Smith, the chief executive of VPhase, said: “The Board is delighted to have secured this funding, and looks forward to working alongside our existing and new shareholders to drive the business forward. This is an exciting stage of VPhase's development, as we continue to accelerate commercial development of the product in the UK, and then expanding into other geographies.”

At the end of September, VPhase revealed a doubling of turnover to £121,000 in the six months to June 30, with operating losses increasing to £720,000 from £480,000 previously.

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