REG - EnergyPathways PLC - Placing and Subscription to raise £1,238,000

EnergypathwaysAnnouncement

Mon 08:15

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RNS Number : 0884D  EnergyPathways PLC  13 October 2025

13 October 2025

EnergyPathways plc

 

("EnergyPathways" or the "Company")

 

Placing and Subscription to raise £1,238,000

 

EnergyPathways (AIM: EPP), the energy transition company, is pleased to
announce that it has conditionally raised approximately £1,238,000
("Fundraise") comprising a placing of £594,000 ("Placing") and a subscription
of approximately £644,000 ("Subscription") principally from existing
long-term shareholders by way of the issue of 20,633,329 new ordinary shares
("Fundraise Shares") at a price of 6 pence per share ("Placing Price").  The
Placing Price represents a 1.3% discount to the closing mid-price of the
Company's ordinary shares on 10 October 2025.

 

Investors in the Fundraise will receive one warrant for each Fundraise Share
("Warrant"). The Warrants have an exercise price of 9 pence and will expire 2
years after the date of the Fundraise Shares' admission to trading on AIM. The
Warrants have an exercise accelerator clause, requiring the Warrant holder to
either exercise or lose the Warrants should the price of the Company's
Ordinary Shares exceed 12 pence (on a 10-day VWAP basis) over a 30-day period.

 

The proceeds from the Fundraise will be used to fund pre-development
activities on the Company's flagship MESH project ("MESH"). As announced by
the Company on 29 September 2025 (see link below), the Rt Hon, Ed Miliband,
the UK's Secretary of State for Energy Security and Net Zero, recently
formally directed that the major elements of MESH be treated as a development
of national significance requiring development consent under the Planning Act
2008. The specific pre-development activities to be funded include technical
and commercial studies for the MESH Long Duration Energy Storage (LDES) and
low carbon flexible power system, large scale low carbon hydrogen production,
graphite production, hydrogen storage and gas storage and extraction.

 

MESH confirmed as project of national significance - 07:00:17 29 Sep 2025 -
EPP News article | London Stock Exchange
(https://www.londonstockexchange.com/news-article/EPP/mesh-confirmed-as-project-of-national-significance/17252346)

 

The Directors consider that the Fundraise provides the Company with sufficient
funding to allow it to continue to develop the MESH project whilst it advances
conversations in respect of long-term cornerstone finance.

 

In connection with the Fundraise, the Company has agreed to issue 636,000 new
ordinary shares in respect of commission payable in respect of assistance with
arranging the Placing ("Commission Shares"). 396,000 of the Commission Shares
will also Warrants attached on the basis of one warrant for every two
Commission Shares.

 

The Fundraise is conditional on the Fundraise Shares, which will be issued
credited as fully paid and will rank pari passu in all respects with the
existing Ordinary Shares, being admitted to trading on AIM ("Admission").
Admission of the Fundraise Shares and the Commission Shares is expected to
occur on or around 27 October 2025.

 

 

Total voting rights

 

Immediately following Admission, the Company will have 220,954,743 Ordinary
Shares in issue. Accordingly, the total number of Ordinary Shares in the
Company with voting rights will be 220,954,743. This figure may be used by
shareholders in the Company as denominator for the calculations by which they
may determine if they are required to notify their interest in, or a change to
their interest in, the Company under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.

 

Commenting on the Fundraise, CEO Ben Clube said:

"With this Fundraise, EnergyPathways is issuing a modest number of new
ordinary shares principally to a select number of pre-existing long-term
investors who are aligned with the Company's long-term vision and business
model. We are pleased to be strengthening the Company's register by increasing
the proportion of shares held by its long-term investors.

 

"The Fundraise provides funds for the Company to progress its flagship MESH
project that has recently been recognised by the UK Government as having
national significance.

 

There is growing appreciation across separate arms of Government of the
national benefits that the MESH project can bring. Currently, billions of
pounds are being wasted each year on unused wind power and this cost is set to
grow rapidly. MESH has the potential to reduce these costs significantly.  It
would also provide the UK with an affordable source of low-carbon hydrogen
production at scale and make the Company an early mover in the production of
synthetic graphite, which is recognised as a critical mineral, being a raw
material that will be indispensable for the UK and Europe's green transition
and defence industry. Furthermore, MESH offers an affordable large-scale gas
storage facility ready to strengthen the UK's energy security.

 

"Events continue to bring into sharp focus for the political class the
importance of energy solutions that can reduce the burden of high energy bills
on consumers while driving forward the transition to clean energy.

 

"The Company continues to evaluate its financing options. We are encouraged by
the interest being shown from large scale clean energy funds and
infrastructure investors.

 

Engage with us by asking questions, watching video summaries and seeing what
other shareholders have to say. Navigate to our Interactive Investor website
here: https://energypathways.uk/link/epJa9P
(https://energypathways.uk/link/epJa9P) .

 

 

Enquiries

 

 Investor questions on this announcement                                      https://energypathways.uk/announcements/7171796
 We encourage all investors to share questions on this announcement via our   (https://energypathways.uk/announcements/7171796)
 investor hub

 EnergyPathways                                                               Tel: +44 (0)207 466 5000, c/o Buchanan (Financial PR)
 Ben Clube / Max Williams

                                                                              Email : info@energypathways.uk
 Cairn Financial Advisers LLP (Nominated Adviser)                             Tel: +44 (0)20 7213 0880
 Jo Turner / Louise O'Driscoll / Sandy Jamieson
 SP Angel Corporate Finance LLP (Broker)                                      Tel: +44 (0)20 3470 0470
 Richard Hail / Adam Cowl
 Global Investment Strategy UK Limited (Joint Broker)                         Tel: +44 (0)20 7048 9000
 Callum Hill / James Sheehan

 

Subscribe to our news alert service: energypathways.uk
(http://energypathways.uk/auth/signup) /auth/signup
(http://energypathways.uk/auth/signup)

 

For further information on EnergyPathways visit www.energypathways.uk and
@energy_pathways on X (formerly Twitter).

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

 

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

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