Azelio pockets USD 31m from directed share issue

Swedish thermal energy storage developer Azelio AB (FRA:4AZ) has finalised a share issue of SEK 270.6 million (USD 30.7m/EUR 26m).

The fresh funds, part of which will cover transaction costs, will be allocated to support Azelio’s ongoing activities and the continued industrialisation of its Thermal Energy Storage (TES) and Stirling-based electricity production technology. The company claims that this technology enables the production of electricity and heat from the storage at 13 hours on nominal power. The system is scalable from 0.1 MW up to 100 MW.

Azelio's goal is to reach industrial volume production in 2021.

The Swedish firm has offered 12.3 million new shares at a price of SEK 22 apiece, which represents a discount of 9% to the closing price of its stock on September 8. The shares were sold to several new Swedish and international institutional investors, as well as to some of the company’s existing shareholders.

Azelio estimates that the proceeds, together with cash on hand, will be enough to finance its business plan into the third quarter of 2021.

“We are now aiming to deliver our first verification report and commercial projects in order to take the company to the next level,” said CEO Jonas Eklind.

Carnegie Investment Bank AB, Pareto Securities AB and Bryan, Garnier & Co were the joint bookrunners for the placement.

(SEK 1.0 = USD 0.113/EUR 0.096)

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