REG - Eco Buildings Group - Completion of Fundraise

Eco BuildingsAnnouncement

15/05/2025 07:00

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RNS Number : 7339I  Eco Buildings Group PLC  15 May 2025

Certain information contained within this Announcement is deemed by the
Company to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon
publication of this Announcement, this information is now considered to be in
the public domain.

15 May 2025

Eco Buildings Group plc

(the "Company" or the "Group")

Fundraise of £670,000 to support capital expansion

 

Eco Buildings Group plc (ECOB), a modular housing company, announces that it
has raised gross proceeds of £670,000 through a firm placing of 16,750,000
new ordinary shares at a price of 4 pence per share (the "Placing Price").

 

£250,000 was placed directly with one new subscriber, with the balance placed
with existing shareholders.

 

This compares favourably to the 30-day volume weighted average price (VWAP) of
5.12 pence, representing a discount of approximately 22%.

 

Proceeds from the Placing will be used primarily to fund the purchase of
additional capital equipment and working capital, specifically a further
manufacturing line at its existing site. This investment is aimed at scaling
production to help service the increasing order book emerging from Albania and
Kosovo.

 

The Company has also agreed to issue Warrants to placees as part of the
Placing on a basis of 1 Warrant for every 2 placing Shares. The Warrants may
be exercised at a price of 13p. The Warrants are exercisable at any time up to
the third anniversary of the date of this announcement at which time they will
lapse.

 

Sanjay Bowry, Chief Executive Officer, commented:

This fund raise enables us to deploy additional manufacturing lines to satisfy
the demand that Eco is seeing as a result of its abilities to produce
inexpensive housing of high quality and at speed.

 

We anticipate announcing updates to this deployment throughout the year and
the subsequent sales of housing as a result

 

Admission and Total Voting Rights

 

The Placing Shares will rank pari passu with the existing ordinary shares in
all respects. Admission of the new ordinary shares for the Placing to the AIM
Market will occur on or around 20 May 2025.

 

Following the admission of the new ordinary shares in relation to the Placing,
the total issued share capital of the Company will be 101,211,747 ordinary
shares, each with voting rights. The above figure may be used by shareholders
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 Disclosure and Transparency Rules.

 

Appointment of Joint Broker

 

The Company is pleased to announce that it has appointed CMC Markets, trading
as CMC CapX, as broker to the Company, with immediate effect.

 

The information communicated in this announcement is inside information for
the purposes of Article 7 of Regulation 596/2014.

 

 

 

 

For more information on Eco Buildings please visit www.eco-buildingsplc.com
(http://www.eco-buildingsplc.com) or contact:

 

 

 

 Eco Buildings Group plc                              Tel: +44 (0)20 7380 0999

 Sanjay Bowry, Chief Executive Officer

 Fiona Hadfield, Finance Director
 Spark Advisory Partners Limited (Nominated Adviser)  Tel: +44 (0)20 3368 3550

 Matt Davis / James Keeshan
 Tavira Financial Limited (Broker)                    Tel: +44 (0)20 3192 1739

 Oliver Stansfield/Jonathan Evans

 

 

Notes

The Company has acquired proven and innovative prefabricated technology which
has been in development and commercial use since 2006. Eco Buildings' range of
prefabricated, green housing products based on glass fibre reinforced gypsum
panels ("GFRG") provides a construction solution for both affordable and
high-end housing.

Eco Buildings has already secured two sales contracts with major construction
companies, one in Albania, the other in Kosovo, which are expected to generate
gross sales revenue of approximately up to €38 million in total per annum
over the first three years (approximately €114 million in total) following
Admission.

The market share for factory-based building technology is expected to grow
significantly over the coming years as private developers and the public
sector seek to address the substantial and growing deficit in housing stock
and issues of construction cost, speed and quality and housing affordability.

 

 

 

 

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