TEG fundraising proposal oversubscribed by 73%
The Chorley-based recycling firm said its plans to raise up to approximately £3.8m through share placing is oversubscribed by shareholders.
The TEG Group said it has received valid acceptances for 13,169,917 new shares from shareholders for 7,622,635 shares priced at 10p available in the open offer.
In a statement on the London Stock Exchange, the TEG Group said: "All entitlements will be met and excess applications will be scaled back pro rata with 7,622,635 Open Offer Shares being issued pursuant to the Open Offer."
In June, TEG announced its had placed 30,766,850 new shares at a price of 10p/share to raise proceeds of approximately £3m, which was arranged by finance firm Ambrian Partners with institutional investors.
TEG Group, which operates and develops biogas plants for producing compost, said there are a number of payments and retentions relating to three Greater Manchester recycling plants in Bredbury, Trafford Park, and Rochdale that are now significantly overdue.
The firm has received the Instruction to Proceed for the construction of a fourth Greater Manchester composting facility in Bolton, which it said had been delayed causing an impact on cashflow at the company.
TEG is using the funding for the plant roll-out programme of the company, accretive acquisitions and for general working capital purposes.
TEG said the placing and the open offer remain conditional upon the approval of shareholders at a general meeting to be held at 12pm on Wednesday at Westmarch House in Buckshaw Village, Chorley.
