REG - Eco Buildings Group - Fundraise of £450,000

Eco BuildingsAnnouncement

21/08/2024 07:00

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RNS Number : 1690B  Eco Buildings Group PLC  21 August 2024

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.

21 August 2024

Eco Buildings Group plc

(the "Company" or the "Group")

£450k Raised from New and Existing Shareholders at 10p

Deliveries and First Revenues Expected Imminently

Deliveries from Upgraded Factory to the Group's Two Existing Home Building
Customers Set to Commence

Eco Buildings Group Plc (ECOB), a modular housing company, is pleased to
announce that it has raised £450,000 via a subscription for 4,500,000 new
ordinary shares ("Subscription Shares") by several supportive existing and new
shareholders (the "Fundraise"). The Subscription will be effected at a price
of 10 pence per share (the "Issue Price").

The Fundraise is conditional, inter alia, upon admission of the Subscription
Shares to trading on AIM becoming effective in accordance with the AIM Rules
for Companies ("Admission") and occurring by not later than 8.00 a.m. on 27
August 2024.

Use of Proceeds

The funds raised will be used to complete delivery on the previously announced
25,000 sqm purchase order for wall panels. Following the completion of the
capital raise the Company also expects to sign additional purchase orders of
wall panels that are currently being negotiated.

Whilst later than expected, following the completion of the lengthy process of
equipment and software upgrades to our primary production line in Durres, we
are now in a position to execute on our two long-standing contracts in the
region, that are expected to generate revenues for the Company of over €114m
over the coming 3 years.

Sanjay Bowry, CEO, Eco Buildings said, "The management team at Eco Buildings
is grateful to our shareholders for their patience and support. Today's
capital raise allows us to execute on a short-term purchase order, as well as
likely providing the springboard for further orders under negotiation in the
near term.. While reaching this crucial revenue and cash flow point took
longer than expected, our customers remain eager for our proven, innovative,
low-cost modular solution. This business model, which minimizes delivery risks
by batch producing near the site, keeps us competitive and ready to capture
growing demand. We look forward to updating the market soon with new
initiatives."

Admission & Total Voting Rights

The new ordinary shares will rank pari passu with the existing ordinary shares
in all respects.

Following the admission of the new ordinary shares, the total issued share
capital of the Company will be 79,170,080 ordinary shares, each with voting
rights. The Company does not hold any ordinary shares in treasury. 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.

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

 

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