Zenova raises £262,500, hits internal FX unit sales target

(Sharecast News) - Fire-retardant systems manufacturer Zenova Group has successfully raised �262,500 via a placing and subscription of 131.25m new shares at 0.20p apiece, alongside one-for-one warrants exercisable at 0.40p within two years.

Zenova said on Friday that proceeds of the fundraise will be used to support its expanding order book, particularly for its FX fire extinguisher range, which has seen strong uptake following new UK rules phasing out PFAS-based foam extinguishers.

Chief executive Thomas Melchior subscribed for 25m shares in the placing, with the new shares expected to begin trading on AIM around 28 August.

The AIM-listed group added it has already hit its internal target of 1,000 FX unit orders in the first month of sales, with recurring demand from domestic and international customers.

It also said deliveries to the Czech Republic have begun, while its Albanian joint venture shipped its first batch of FP fire protection coatings to a new overseas client.

Melchior said: "We are very pleased with the strong start to our FX extinguisher sales, particularly in the UK where regulatory changes are driving demand for safer, more effective fire safety solutions. Achieving our first-month target of 1,000 fire extinguisher units orders demonstrates both the quality of our products and the trust our customers place in Zenova."

As of 0925 BST, Zenova shares had sunk 9.13% to 0.21p.

Reporting by Iain Gilbert at Sharecast.com