Business
Fundraise of £450,000
Fundraise of £450,000.
About this update from Eco Buildings Group Plc
[{"type":"text","content":"\n\nCertain 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.\n21 August 2024\nEco Buildings Group plc\n(the \"Company\" or the \"Group\")\n£450k Raised from New and Existing Shareholders at 10p\nDeliveries and First Revenues Expected Imminently\nDeliveries from Upgraded Factory to the Group's Two Existing Home Building Customers Set to Commence\nEco 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\").\nThe 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.\nUse of Proceeds\nThe 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.\nWhilst 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. \nSanjay 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, w...