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(Sharecast News) - Xeros Technology Group announced on Friday that it has conditionally raised 3m through a placing and initial subscription, and launched a retail offer, as the AIM-traded cleantech company looked for up to 6m in total to strengthen its balance sheet and accelerate commercialisation of its laundry and garment-care technologies.
The firm said an accelerated bookbuild launched on Thursday had closed, with 171,847,501 new shares placed and subscribed for at 1.75p each, raising gross proceeds of 3m.
In addition, Xeros said it was seeking up to a further 2m via a follow-on subscription, and up to 1m through a retail offer to existing shareholders, both at the same issue price.
The new shares, including those under the retail and follow-on subscriptions, would represent about 39.7% of the enlarged share capital assuming full take-up.
It said the issue price represented a discount of about 22.2% to the closing mid-market price of 2.25p on 5 November, but a premium of roughly 2.4% to the 30-day average closing price of 1.71p.
Xeros said the initial fundraise would provide at least 12 months' working capital.
Net proceeds from the overall fundraising were expected to be up to 5.6m, with the company planning to bolster its balance sheet to support execution of existing contracts, pursue global opportunities and provide reassurance to counterparties, while funding working capital as it advances commercialisation of its core microfibre filter, laundry care and garment finishing technologies.
The cash would also provide contingency against the timing of royalty income and operational cash flow break-even, and may be used to scale operations and accelerate development of other markets and applications for its intellectual property.
Alongside the institutional placing and subscriptions, Xeros opened a retail offer of up to 57,142,857 new shares, aiming to raise up to 1m.
The offer, coordinated by Cavendish Capital Markets via the BookBuild platform, was open from 0700 GMT on Friday until 1200 GMT on 11 November, and was available only to existing shareholders resident in the UK applying through participating intermediaries.
The company said it "values its retail shareholder base, which has supported the company alongside institutional investors since IPO," and was therefore giving UK retail holders the chance to participate on the same pricing terms.
Chief executive Neil Austin said the fundraise would support Xeros' push to embed its technology with major industry partners.
"We have immediate commercial opportunities within domestic laundry for care and filtration, denim processing, and commercial laundry," he said.
"Major global players across these areas are working with us to use our technology to help them improve performance, lessen environmental damage, and save energy, resources and money.
"This fundraise will ensure we continue the positive trajectory achieved in 2025, which is taking us ever closer to the global adoption of Xeros' technology."
At 1234 GMT, shares in Xeros Technology Group were down 8.89% at 2.05p.
Reporting by Josh White for Sharecast.com.