Minesto raises EUR 11m in rights issue to advance tidal power

Swedish marine energy developer Minesto AB (STO:MINEST) announced the final outcome of its rights issue, securing SEK 120 million (USD 11.5m/EUR 10.7m) in gross proceeds to fund its pipeline of projects under development.

The transaction was subscribed at about 57.9% of the originally offered amount. The subscription price of the rights issue was SEK 5.20 per new Minesto share, the Swedish firm announced earlier in March.

Roughly 16 million shares were subscribed for with subscription rights. There are also applications for subscriptions for just above 1.13 million shares without subscription rights.

Minesto first announced the rights issue plan at the beginning of February. The company originally intended to place roughly 29.5 million shares, seeking gross proceeds of SEK 153 million.

The Swedish firm will use the fresh funds to continue the commercialisation and expansion of its project portfolio in early target markets and to finance the completion of the installation and commissioning of its tidal power unit Dragon 12. A portion of the proceeds will also go for the financing of the first phase of the company’s first full-scale 10-MW tidal energy array in Hestfjord, Faroe Islands, as well as for other corporate purposes.

(SEK 10 = USD 0.961/EUR 0.896)

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