Sabien Technology to raise £750,000 via placing

Energy efficiency technology manufacturer Sabien Technology will raise £750,000 through a share placing on AIM on Wednesday, in order to invest in pilot projects.

The company will place 18.75m shares at 4p per share to raise £750,000, before expenses, from institutional and other investors.

Following admission to AIM on 21 September, the company's total enlarged issued share capital will be about 62.75m ordinary shares of 0.5p each.

The funds raised increased the number of projects the company would be able to take on in 2017. There will now be 40 M2G boiler load optimisation control pilot projects, and several initial pilot projects for EndoTherm, an energy reduction commercial heating additive.

In June, the company signed a 10-year agreement with Endo Enterprises, to act as sole distributor for Endotherm in the UK to the multi-site commercial heating sector.

Chief executive Alan O'Brien, said: "We successfully achieved our target of signing up to 35 M2G pilots in 2016 and, in line with expectations we plan to run up to 40 M2G pilots in 2017. These include some more in the USA where we supported our distributor in running a number of successful pilots last year.”

Chairman Bruce Gordon and Karl Monaghan, a non-executive director, are to subscribe for up to 3.69m and 125,000 shares respectively.

Following admission of the new shares, Gordon will hold 5.49 shares directly, which will represent 8.7% of share capital.

Bruce is also a director of Thames Valley Capital, an advisor to TVI 2, which holds about 4.1 shares in Sabien, which will represent 6.5% of the enlarged share capital. Gordon will therefore be interested, directly and indirectly, in over 9.6m shares, or 15.3% of the share capital.

Monaghan will hold about 1.5m shares, representing 2.4%.

The company also set itself a target for a return to profitability in 2018 and a £25m sales pipeline in five-years time, converting into annual sales of £8m with an EBITDA margin of 25%.

Shares in Sabien Technology were up 8.89% to 4.90p to 1021 BST.