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Minesto gets more funds to commercialise subsea kite technology

The DG500 kite. Source: Minesto AB

October 29 (Renewables Now) - Swedish marine energy developer Minesto AB said on Monday it has raised SEK 60 million (USD 6.2m/EUR 5.6m) gross from a directed issue of units and announced plans for a subsequent rights issue targeting SEK 86.5 million.

Funds from the placements will be used to support the commercialisation of Minesto’s Deep Green subsea kite technology and for initiatives that will facilitate the next phases of the large-scale commercialisation of that technology. Some funds will be spent on other products and market development activities.

“We secure the capital needed to realise our current public-funded projects as well as other market and product development activities,” said CEO Martin Edlund.  

The Gothenburg-based marine energy firm is developing a subsea kite device that generates electricity from slow tidal streams and ocean currents through the use of subsea kite turbines. While technology and product development take place in Sweden, Minesto operates its projects in the UK, the Faroe Islands, France and Taiwan.

In the directed issue, Minesto has offered some 4.25 million units at SEK 14.12 each, with one unit consisting of one share and one warrant for subscribing in the company’s stock before April 30, 2021. An unnamed international institutional investor has invested SEK 40 million, while the remaining SEK 20 million came from Sweden-based Midroc New Technology AB. Minesto noted that the total of SEK 60 million does not include transaction costs.

Following the directed issue, Minesto’s share capital will expand to SEK 5.97 million from SEK 5.76 million.

In the proposed rights issue, planned to be carried out so that all of the company’s shareholders keep their relative interests, Minesto will issue a further SEK 86.5 million worth of units, identical to the ones in the initial offering. BGA Invest AB, its largest shareholder, has pledged to invest SEK 20 million. Subscriptions in this offering will be accepted between December 4 and December 18. 

Minesto estimates that if the right to the maximum number of warrants is exercised in full in both transactions, it will be able to get SEK 202 million in gross proceeds, based on the strike price of SEK 19.42 per warrant.

Minesto has hired Pareto Securities AB as the sole manager and bookrunner in the two deals, while MAQS Advokatbyra is its legal counsel.

(SEK 1.0 = USD 0.103/EUR 0.093)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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