Chorley-based TEG Group, which develops and operates organic composting and energy plants, has called off sale talks and plans to raise £2m from a share offer instead.
The AIM-listed company announced an open offer of new ordinary shares to its shareholders on the basis of 57 new shares for every 100 existing shares at a price of 3p, a 59% discount to the closing price on Friday 1 June. Should it be fully subscribed, the offer would generate £2.0m.
Around £1.8m has already been underwritten by existing shareholders Weekcorp, manager of shares held by Southern Fox Investments, Bridges and Impax.
The extra funds are needed to cover the cost of delays to a PFI scheme in Bolton and cancellation of a contract in North Wales.