- ITM Power unveiled plans to raise at least £52.0m gross and announced that it had formed a joint venture with Linde. The company also said annual losses widened as higher costs offset an uptick in revenue.

Plans to raise at least £52.0m (before expenses) included a strategic equity investment of £38.0m at 40p per share by Linde UK, and a conditional placing of £14.0m at 40p per share with certain existing and new institutional investors, the company said.

The company also intended to raise up to about £6.8m through an open offer of 17,053,126 shares at a price of 40p per share.

The 50/50 joint venture with Linde would focus on delivering green hydrogen to large scale industrial projects, principally those with an installed electrolyser capacity of 10 megawatts and above, the company said.

The net proceeds of the fundraising would be used principally to enhance the manufacturing capabilities of the company, particularly for the development and production of large scale 5MW electrolysers, to facilitate product standardisation and manufacturing cost reduction, to fund its initial financial contribution to the JV, and provide working capital and balance sheet strength to support the delivery of the contract backlog and opportunity pipeline.

The company also released its full-year results showing losses widened as higher costs offset an increase in revenue.

For the 12 months ended 30 April, pre-tax loss widened to £9.3m from £6.5m a year earlier, while sales revenue rose 40% to £4.6m.

This loss was attributed to similar factors that weighed on results last year, including the cost of the new constructing and installing the new plant, increased costs of recruitment in the year, while an impairment relating to a historic prepayment also hurt performance.

‘The next year will be a period in which we transition to our much larger new factory,’ the company said.

At 8:13am: [LON:ITM] ITM Power PLC share price was +0.95p at 43.95p

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