Hydrodec plans £10m placing to boost US operations

Hydrodec’s shares plummeted by 40% on Monday as the company announced its intention to raise £10m to fund its new business plans following a strategic review.

Issued shares in the placing will be priced at no less than 75p and the proceeds will be injected into the waste oil refinement company’s operations in North America to fund research and development, increase capacity and repay £3m.

Alongside the placing, the group intends to provide qualifying shareholders with the opportunity to subscribe for new ordinary shares to raise up to a further £2.8m, before expenses.

The new ordinary shares are expected to be admitted to trading on the morning of 26 October.

Alongside the fundraise announcement, the company also confirmed the appointment of David Dinwoodie as chief executive.

"I am delighted to be appointed as CEO at this inflexion point for Hydrodec. This is a relaunch for the company - an exciting opportunity for the business, with a strong platform for growth. With this raise we can now inject essential working capital into our core US business to broaden access to substantial volumes of reliable and consistent supplies of feedstock,” said Dinwoodie.

Hydrodec’s shares were down 41.57% at 0.74p at 1635 BST.