Atlantis Resources Limited, a developer in the tidal power sector, has raised approximately £6.5 million before expenses through the conditional placing of 11,888,460 new ordinary shares at a placing price of 55 pence per share.
Proceeds will be used to fund project development activities across the Atlantis project portfolio and working capital.
Tim Cornelius, CEO of Atlantis, commented:
“Through this successful placing both existing and new shareholders have demonstrated their support for Atlantis, our recent achievements and our ambitions for the future – both in the immediate and longer term. We look forward to working with our partners to further the development of the tidal stream industry in the UK and beyond.”
The placing price represents a discount of approximately 20.3 per cent. to the closing mid-market share price of 69.0 pence per ordinary share on 19 April 2016.
Atlantis is now focused on achieving financial close for its most developed projects, aided by its recent partnership agreement with Equitix Limited.
Phase 1A of the 398MW MeyGen project is expected to produce first power in H2 2016, paving the way for the build out of further capacity. Phase 1B will add a further 6MW of capacity, followed by 74MW of capacity in Phase 1C bringing the aggregate installed capacity at the site to 86MW. Grid connection agreements and consents are already in place for this build out, and Phase 1B has €17 million of grant funding attached. The proceeds of the Placing are intended to be used to assist in bringing Phase 1B to financial close and to accelerate development of Phase 1C to achieve financial close in 2017.
The proceeds are also intended to be applied to assist in achieving financial close for the Sound of Islay project on the west coast of Scotland. This 10MW project has a grid agreement and consents in place, and €21 million of grant funding awarded through the European NER300 programme.
Proceeds will also be used to meet the general working capital requirements of the Atlantis group.
Peel Hunt LLP and Macquarie Capital acted as agents for the company.