RCS - IP Group PLC - Portfolio company Ceres announces £20m funding <Origin Href="QuoteRef">IPO.L</Origin>

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06/09/2014 14:44

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RNS Number : 0659M
IP Group PLC
11 July 2014 
 
 FOR RELEASE ON  11 July 2014  
 
 
11 July 2014 
 
IP Group plc -Portfolio company Ceres Power announces £20m funding round 
 
IP Group plc (LSE: IPO) ("IP Group"), the developer of intellectual property
based businesses, is pleased to note that portfolio company Ceres Power
Holdings plc ("Ceres" or "the Group" or "the Company"), a world-leading
developer of low cost, next generation fuel cell technology for use in
distributed generation and other applications, has today announced it intends
to raise approximately £20 million (approximately £19.6 million net of
expenses) by way of an oversubscribed placing at 8.5 pence per share. 
 
The purpose of the Placing is to provide the Group with sufficient working
capital funding to (i) respond to the commercial interest it has generated
until the next stage commercial agreements are in place and to progress the
Ceres Steel Cell technology and manufacturing roadmaps in order to maintain
the Group's technology advantage; (ii) provide enough growth capital funding
to allow the Group to explore and capture more value in higher power
applications; and (iii) provide the Group with the flexibility to increase
manufacturing volumes, as driven by commercial engagements. 
 
The Ceres Directors believe that the net proceeds of the placing coupled with
the cash and cash equivalents which the Group holds, will provide sufficient
capital for Ceres to make substantial commercial and technical progress well
into 2016. By this time, the Ceres Directors believe that the Group should
have secured several second stage development agreements for the residential
market and validated the potential of the Ceres Steel Cell technology to
address higher power applications for the business market. 
 
IP Group has agreed to subscribe for 47,058,822 placing shares, representing
approximately £4 million. Following the placing, IP Group will hold
179,558,822 ordinary shares in the Company, representing 23.2% of the enlarged
issued share capital. 
 
The Directors of Ceres believe that the Ceres Steel Cell technology provides
the step change in cost that fuel cells need for widespread adoption and that
it therefore has the potential to transform the way that power is produced.
The Group's next generation Steel Cell technology operates on mains natural
gas and the Directors believe that it has the capability of being able to be
mass produced at an affordable price for both domestic and business use. 
 
Commenting on the placing, Alan Aubrey, Chief Executive of IP Group, said:
"This level of funding recognises the significant progress the company has
made over the past year and is an endorsement of the management team and its
strategy for the company. We are especially delighted with the quality of
investors that we have attracted to the register." 
 
Phil Caldwell, Chief Executive of Ceres, commented: "We believe that fuel
cells are a technology whose time has come and Ceres Power is now well
positioned to be one of the leaders in this rapidly growing industry. This
funding will enable the company to advance the development and
commercialisation of our low cost Steel Cell technology across different
markets and applications, with our world class partners." 
 
The Placing is conditional upon, inter alia, the passing of Resolutions by the
Shareholders of the Company at a general meeting to be held on 29 July 2014. 
 
For more information, please contact: 
 
 IP Group plc                          www.ipgroupplc.com                                                    
 Alan Aubrey, Chief Executive Officer  +44 (0) 20 7444 0050                                                  
 Liz Vaughan-Adams, Communications     +44 (0) 20 7444 0062 / +44 (0) 7979 853 802liz.vadams@ipgroupplc.com  
 FTI Consulting                                                                                              
 John Dineen                           +44 (0) 20 7831 3113                                                  
 
 
Notes for editors 
 
About IP Group 
 
IP Group is a leading UK intellectual property commercialisation company,
developing technology innovations primarily from its research intensive
partner universities. The Group offers more than traditional venture capital,
providing its companies with access to business building expertise, networks,
recruitment and business support. 
 
IP Group's portfolio comprises holdings in around 90 early stage to mature
businesses across the Healthcare, Biotech, Cleantech and Technology sectors.
These businesses include Oxford Nanopore Technologies, the DNA sequencing
development company, Revolymer, best known for its removable chewing gum and
Xeros, which has received many accolades for its revolutionary clothes washing
techniques with a much reduced requirement for water. 
 
For more information, please visit our website at www.ipgroupplc.com. 
 
About Ceres Power 
 
Ceres Power is a world leading developer of low cost, next generation fuel
cell technology for use in decentralised energy products that reduce operating
costs, lower CO2 emissions, increase efficiency and improve energy security. 
The Ceres unique patented Steel Cell technology operates on mains natural gas
and is manufactured using standard manufacturing processes and conventional
materials such as steel, meaning that it can be mass produced at an affordable
price for domestic and business use. 
 
www.cerespower.com 
 
Ends 
 
This information is provided by RNS
The company news service from the London Stock Exchange