REG - Velocys PLC - Funding update

VelocysAnnouncement

31/10/2023 07:00

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RNS Number : 7764R  Velocys PLC  31 October 2023

News release

 

Velocys plc

 

("Velocys" or the "Company")

 

31 October 2023

 

Funding Update

 

 

Velocys plc (VLS. L), the sustainable fuels technology company, provides an
update on the progress of its funding plans.

 

The Company announced on 21 September 2023 that the longstop date for the
Convertible Loan Notes ("CLN") transaction (details of which were announced on
18 May 2023) had been extended to 31 October 2023. The CLN terms included,
inter alia, a commitment by Carbon Direct Capital to invest $15 million via
the CLN subject to certain conditions including a minimum aggregate raise of
$40 million (including proceeds from the placing of new ordinary shares in the
Company completed in May 2023), which have not been satisfied.

 

Velocys continues to be in active funding discussions with all strategic
investors who have been undertaking due diligence for some months with a view
to obtaining long term funding for the Company. It has become clear that any
investment into the Company resulting from these discussions is unlikely to be
on the same terms as the previously announced CLN, accordingly there will be
no further extension to the CLN longstop date. There are no binding
arrangements for funding at this stage.

 

As detailed in its recent Interim Results, Velocys still anticipates that
funding will be required before the end of this calendar year and therefore
the Board is prudently exploring near term funding options as discussions with
the strategic investors continue. Further updates will be provided in due
course.

 

 

For further information, please contact:

 

 Velocys                                               +44 1865 800821

 Henrik Wareborn, CEO

 Philip Sanderson, CFO

 Panmure Gordon (UK) Limited (Nomad and Joint Broker)  +44 20 7886 2500

 Hugh Rich (Corporate Broking)

 Emma Earl (Corporate Finance)

 John Prior (Corporate Finance)
 Shore Capital Stockbrokers Limited (Joint Broker)     +44 20 7408 4090

 Henry Willcocks (Corporate Broking)

 Toby Gibbs (Corporate Advisory)

 James Thomas (Corporate Advisory)
 Radnor Capital (Investor Relations)                   +44 20 3897 1830

 Joshua Cryer

 Iain Daly
 Buchanan (Financial PR)                               +44 20 7466 5000

 Helen Tarbet

 Simon Compton

 

 

--Ends-

 

Notes to Editors

 

Velocys is an LSE-listed, international sustainable fuels technology company,
traded on the AIM, providing customers with a technology solution to enable
the production of negative Carbon Intensity synthetic, drop-in fuels from a
variety of waste materials. Synthetic fuel is the only commercially available,
permanent alternative to fossil aviation fuels. The Velocys technology is
IP-protected in all major jurisdictions.

 

Two reference projects (Bayou Fuels, US, and Altalto Immingham, UK) are
designed to accelerate the adoption and standardise the Velocys proprietary
Fischer Tropsch (FT) technology with an integrated end to end solution,
including renewable power and carbon sequestration.

Velocys is enabling commercial scale synthetic fuel production in response to
the clean energy transition, with significant additional positive air quality
impacts.

www.velocys.com (http://www.velocys.com)

 

 

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