Hydrogen fuel firm ITM Power plc (LON:ITM) says its raised £5.7 million via an accelerated bookbuild as demand and interest for its products continues to grow.
The firm placed shares at 17p a share with existing and new institutional investors - that's a slight discount to yesterday's closing price of 17.625p.
ITM said the funds would be used to advance it towards a positive cash flow position as well as to assist in meeting tender requirements, notably to obtain upfront payment terms from customers.
As it stands, the company has £16.98 million of projects under contract and a further £1.37 million in the later stages of negotiation.
A number of its agreements require ITM to stump up upfront cash, while income is received towards the end of the contract, meaning there is a shortfall in working capital.
For calendar 2016, orders have totalled £15.68mln, which is a 100% increase year-on-year and ITM said it remains confident of delivering full year results to end April in line with market expectations.
For its half year to October 31, the firm reported revenue of £0.4mln, down 39% compared to the same period of 2015 with total revenue and grant funding of £2.97mln (2015: £3.45m), down 14%, reflecting the early stages of build projects during which there is relatively little revenue recognition.
The loss from operations was £2.27mln (2015: loss of £3.17mln) - an improvement of 28%.
Cash burn decreased by £2.29mln to 1.61mln as the costly initial outlays on the building of new refuelling stations were set by pre-financing receipts for some larger European grants.
Hydrogen refuelling was a particular focus in the latest half, with two new refuelling stations in London opened and fuel contracts signed with Arcola Energy, Commercial Group and Arval.
ITM now has four refuelling units in operation, three in the UK and one in California.
Its collaboration with energy giant Shell will lead to the first refuelling station on a Shell forecourt within the next few months.
In the power-to-gas market, in Frankfurt, for the Thüga Group, the plant has been operating for over three years with Thüga continuing to report 'better than expected' results.
The market in Germany and increasingly the UK and USA shows signs of significant growth and, with negotiations ongoing for sales in other new markets, the momentum looks set to continue, the company said.
Shares nudged 2.13% higher, having been lower earlier, to stand at 18p each.