Invinity Energy Systems plc (LSE:IES) has announced plans to raise at least £20 million through a combination of a share subscription, institutional placing and retail offer, with all new ordinary shares priced at 10 pence each.
The AIM-listed manufacturer of vanadium flow battery systems has entered an AIM Capital Access Window to facilitate the proposed fundraising process, resulting in a temporary suspension of trading in its ordinary shares.
The company said the proposed capital raising is intended to support its financial position and further commercial development in the long-duration energy storage market.
The fundraising remains subject to completion of the relevant processes and shareholder approval.
Proposed Fundraise Combines Subscription, Placing and Retail Offer
Invinity intends to raise a minimum of £20 million through three components: a subscription for new ordinary shares, an institutional placing and an offer to retail investors.
All three components are proposed at an issue price of 10 pence per new ordinary share.
At that price, raising £20 million would require the issuance of at least 200 million new ordinary shares, before any associated expenses.
The final number of shares issued will depend on the total amount raised through the proposed transaction.
The company has not provided a final allocation between the subscription, institutional placing and retail offer in the supplied announcement.
The fundraising is intended to provide additional capital for Invinity’s operations and commercial development activities.
AIM Capital Access Window Introduced During Fundraising
Invinity has entered an AIM Capital Access Window in connection with the proposed share issue.
Under this arrangement, trading in the company’s ordinary shares has been temporarily suspended while the fundraising process is undertaken.
The suspension is intended to facilitate the capital raising and associated shareholder approval process.
Trading is expected to remain suspended until the relevant fundraising arrangements have been concluded and the required shareholder approval has been obtained.
The company has not specified a confirmed date for the resumption of trading.
Completion of the proposed fundraise remains conditional, and the announcement does not establish that the targeted proceeds have been secured.
Endurium Batteries Target Long-Duration Energy Storage
Invinity develops and manufactures vanadium flow battery systems designed for long-duration electricity storage.
Its Endurium product range is intended for applications requiring repeated charging and discharging over extended operating periods.
The systems are designed to support electricity networks, renewable energy projects and commercial and industrial customers requiring energy storage capacity.
Unlike lithium-ion batteries, vanadium flow batteries use liquid electrolytes containing vanadium to store energy.
Invinity markets its technology as a non-flammable storage alternative designed for high-throughput applications and extended service life.
The company’s Endurium systems are engineered for an operating life of approximately 30 years.
Manufacturing Operations in the UK and Canada
Invinity operates battery manufacturing facilities in the United Kingdom and Canada, supporting the production and development of its energy storage systems.
The company supplies technology intended to help electricity customers manage fluctuations in renewable generation and provide stored power when required.
Its systems have been deployed in multiple markets, with the company reporting that its installed technology has delivered gigawatt-hours of electricity to customers worldwide.
Invinity’s commercial activities focus on utility-scale storage, renewable energy integration and commercial and industrial applications.
The proposed fundraising forms part of its efforts to support these operations and pursue further deployment opportunities.
Fundraising Remains Subject to Shareholder Approval
The proposed transaction would provide Invinity with at least £20 million in gross proceeds if completed at the stated minimum amount.
However, the final fundraising outcome remains subject to investor participation, completion of the relevant transaction arrangements and shareholder approval.
The issuance of new ordinary shares would also increase the company’s share capital, resulting in dilution for existing shareholders who do not participate.
Invinity has not disclosed a confirmed timetable for completion or the resumption of trading in the supplied update.
The company will continue progressing the proposed fundraising while its shares remain suspended under the AIM Capital Access Window.
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