REG - Cindrigo Hldgs Ltd - Expansion Funding and Integrated Wood Pellet JV

Cindrigo HoldingsAnnouncement

29/04/2026 07:00

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RNS Number : 3054C  Cindrigo Holdings Limited  29 April 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

29 April 2026

Cindrigo Holdings Limited

("Cindrigo", the "Company" or the "Group")

 

Expansion Funding and Integrated Wood Pellet Joint Venture

£6.7m direct equity investment into Cindrigo and €3m JV funding to
establish integrated Biomass platform

 

Cindrigo Holdings Limited (LSE: CINH), is pleased to confirm that further to
the RNS announcements on 23 December 2025 and 4 April 2026, it has entered
into binding agreements with a strategic investor group (the "Investors") for
over £11 million in investments and guarantees across the Group and its
biomass development activities, to support and strengthen the Group's
development.

 

The agreement also provides for the expansion of Cindrigo's biomass operations
through the joint development of an integrated sustainable wood pellet
business via Fuelwood Finland Oy ("Fuelwood"). Fuelwood is expected to become
the primary customer of energy from the Group's Finnish heat-generating
business, forming a key part of Cindrigo's vertically integrated biomass
strategy.

 

Under the terms of the agreements, the Investors will provide approximately
£6.7 million in equity funding for Cindrigo at a price of 12 pence per share
and contribute a further €3 million into Fuelwood and has also committed up
to an additional £2 million  to be drawn down to the extent the Company's
warrants exercisable up until 31 July 2026 are not exercised. Furthermore, the
Investors have the right but not the obligation to subscribe an additional £2
million.

 

In combination with a €1 million development loan from Cindrigo, the
Fuelwood joint venture will have an initial capitalisation of approximately
€4 million, sufficient to support its establishment and initial operational
phase. In addition, the Group will provide management services to Fuelwood,
which are expected to generate approximately €1m of revenue in 2026 for
Cindrigo.

 

Key Points

·      Approximately £6.7 million (£3 million and US$5 million) equity
investment from the Investors directly into Cindrigo at 12 pence per share.

·      The Investors have also committed up to £2 million, which will
be drawn down if any of the Company's warrants, which are capable of exercise
up to 31July 2026, are not fully exercised,

o  Investment to be made at the lower of a 20% discount to the Company's
30-day volume weighted average price ("VWAP") or 12 pence per share.

·      In addition, the same Investor has the right to subscribe for a
further £2m of Cindrigo shares at a 20% discount to the Company's 30-day
VWAP.

·      Cindrigo and the Investors will operate  Fuelwood as a jointly
funded and operated sustainable biomass business, with Cindrigo initially
holding a 20% interest. Cindrigo retains the right to increase its ownership
to a majority position, with potential for further consolidation over time.

·      Cindrigo and the Investors will jointly fund Fuelwood joint
venture, initially with €4 million through 3 years development-loans with a
9% interest per annum.:

o  The Investors will contribute €3 million

o  Cindrigo will provide a €1 million

·      Funding is sufficient for Fuelwood to achieve an initial
production capacity of 80,000 tonnes per annum ("tpa") by the end of 2026. The
long-term target is circa 400,000 tpa.

o  Implied revenue potential of c. €20 million and c. €100 million
respectively, based on recent wood pellet prices.

·      The Group will provide support to Fuelwood under a Management
Services Agreement during installation and establishment, and for at least the
first year of operation, generating €75,000 per month during 2026

·      Fuelwood is expected to become the primary customer of energy
services from the Group's energy business in Finland.

·      The integrated operating model is expected to deliver
operational, cost and commercial synergies, broaden industrial heat, pellet
and power sales and reduce reliance on a single third-party off-taker.

 

Lars Guldstrand, CEO of Cindrigo, commented:

"This announcement marks the transition from strategic intent to execution of
both a funding and strategic partnership to support the Group's expansion. The
combined investment into Cindrigo and the Fuelwood joint venture provides a
strong foundation for the Company's continued development and our integrated
sustainable biomass platform. The funds will enable us to commence pellet
production while supporting the ramp-up of our energy operations in Finland.

 

"Fuelwood is a key component of our biomass strategy, linking sustainable
pellet production with heat, steam and power generation. This integrated
structure provides an opportunity to broaden our market reach, diversifying
revenue streams and increasing our ownership over time. The Management
Services Agreement provides operating control and recurring service income,
while allowing us to align production and energy demand from the outset.

 

"We expect ramp-up during 2026, with initial pellet production volumes
commencing during the year and building towards the winter season. By the end
of 2026, we aim to achieve a rolling annual pellet production rate of approx.
80,000 tonnes, providing a solid base for expansion towards our longer-term
target of approximately 400,000 tonnes per annum. The energy plant, as the
primary heat and power provider to Fuelwood, will follow a parallel growth
path.

 

"Importantly, the funding secured will not only support the development of our
biomass operations in Finland, but also strengthen the Group's broader
financial position, allowing us to accelerate our activities in Germany and
across our wider portfolio.

 

"We look forward to the coming period with confidence as we continue to
execute our strategy to build a diversified, scalable energy platform, with a
strong foothold in Europe's energy transition."

 

Application for Subscription Shares

On receipt of subscription funds, application will be made for the admission
to trading of 55,708,333 new ordinary shares of £0.01 each in the Company
(the "Subscription Shares"), to be issued pursuant to the c. £6.7 million
subscription by the Investor, at a price of 12 pence per new ordinary share.
The Subscription Shares, when issued, are expected to represent 14.3% of the
Enlarged Share Capital. The Subscription Shares will rank pari passu in all
respects with the existing ordinary shares of the Company. A further
announcement confirming receipt of the subscription funds, the expected
admission date for the Subscription Shares and the Company's total voting
rights will be made in due course.

 

ENDS

 

To sign up for future news and updates from the Company please subscribe here:
https://www.cindrigo.com/mailing-list/
(https://www.cindrigo.com/mailing-list/)

 

For further information, please visit www.cindrigo.com
(http://www.cindrigo.com) , follow us on social media (LinkedIn and X) or
contact:

 

 Cindrigo Holdings Limited

 Lars Guldstrand, CEO                          LG@cindrigo.com (mailto:LG@cindrigo.com)

                                               Tel: +44 (0) 740 886 1667
 Beaumont Cornish Limited (Sponsor)

 Roland Cornish /Asia Szusciak /Andrew Price   Tel: +44 (0)207 628 3396
 Capital Plus Partners Limited (Broker)

 Jonathan Critchley                            Tel: +44 (0)207 432 0501
 St Brides Partners (Financial PR)

 Paul Dulieu / Charlotte Page                  cindrigo@stbridespartners.co.uk (mailto:cindrigo@stbridespartners.co.uk)

Further Information

Following the Company's listing, Cindrigo has strengthened its strategic and
commercial position, enabling engagement with new investors and partners. The
Board views this investment as a coordinated strategic partnership aligning
capital, ownership and execution across the biomass value chain, supporting
disciplined delivery of the Group's biomass strategy and long-term expansion.

 

Fuelwood is developing a wood pellet production facility that will operate in
close integration with the Group's energy plant. Through its initial 20%
equity interest and Management Services Agreement, Cindrigo will play a
central role in the development and operation of the business.

 

The integrated model is expected to improve operational certainty, increase
utilisation of existing assets and infrastructure, and diversify revenue
streams across pellet production, industrial heat, steam and power sales. The
phased ramp-up model allows for controlled execution, with initial services
already underway and progressive increases in production and energy delivery
expected during 2026 and beyond.

 

Strong Market Demand

The Finnish biomass market continues to demonstrate strong underlying demand.
Structural changes in energy consumption, combined with increased availability
of feedstock and ongoing conversion from fossil fuels, are supporting growth
in wood pellet demand.

 

Fuelwood is expected to achieve an initial production capacity of
approximately 80,000 tpa by the end of 2026, with a long-term target of
approximately 400,000 tpa. At current market prices of approximately €240
per tonne, this represents a potential annual revenue of up to approximately
€100 million at full capacity. This would position Fuelwood as one of
Europe's largest sustainable wood pellet production facilities and a key
contributor to Europe's transition to sustainable energy.

 

Regional trading platforms for Finland reported an index price for spot
contracts for delivered wood pellets equivalent to approximately €240 per
tonne.

 

Balanced Growth Across Biomass and Geothermal

Biomass and geothermal are viewed as complementary components of the Group's
long-term strategy. Biomass provides a near-term solution for decarbonise
current fossil fuel sectors, while geothermal supports long-term energy
security through "always available" sustainable energy production.

 

While expanding its biomass activities, the Company also continues to advance
its geothermal licences in the Upper Rhine Valley, targeting a potential
combined capacity of approximately 300 MW across multiple projects.

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Sponsor as
defined in the FCA UK Listing Rules and is authorised and regulated by the
FCA. Beaumont Cornish Limited is acting exclusively for the Company and for no
one else in relation to the matters described in this announcement and is not
advising any other person and accordingly will not be responsible to anyone
other than the Company for providing the protections afforded to clients of
Beaumont Cornish Limited, or for providing advice in relation to the contents
of this announcement or any matter referred to in it.

 

This Announcement contains forward-looking statements. These statements relate
to the Company's future prospects, developments and business strategies.
Forward-looking statements are identified by their use of terms and phrases
such as "potential", "estimate", "expect", "may", "will" or the negative of
such terms and phrases, variations or comparable expressions, including
references to assumptions. The forward-looking statements in this Announcement
are based on current expectations and are subject to risks and uncertainties
that could cause actual results to differ materially from those expressed or
implied by those statements. These forward-looking statements speak only as at
the date of this Announcement. No statement in this Announcement is intended
to constitute a profit forecast or profit estimate for any period. Neither the
Directors nor the Company undertake any obligation to update forward-looking
statements other than as required by the AIM Rules or by the rules of any
other securities regulatory authority, whether as a result of new information,
future events or otherwise.

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