Funding the road to commercial deployment
Deinove's (PA:ALDEI) proposed capital raising (€9.3m) should allow the company to continue to develop its technology to the point when commercial revenues are expected to begin (2017/18). The intended distribution of the proceeds among Deinove’s businesses highlights the increased importance of the Deinochem offering within Deinove’s portfolio. It also highlights the greater number of potential revenue-generating projects beyond biofuels to which Deinove can now point.
Deinove has announced a capital increase (open to French individuals and qualified investors in the European Economic Area) to raise €9.3m. The terms of the issue are one new share for every three existing shares, priced at €4.5/share, resulting in the issue of 2.061m shares. If all existing options on Deinove’s shares are exercised, the total amount raised could rise to €10.7m; if the extension clause is fully exercised, but with no options exercised, the total will also be €10.7m. These two assumptions combined would lead to total proceeds of €12.3m, representing an additional 2.73m shares. Subscription commitments so far total €5.5m. Deinove has stated that it intends to use the proceeds to finance accelerating the development and commercialisation of its technology in biofuels and biochemistry.
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