Romag Holdings said 17 July 2007 that it proposes to place 4,543,619 new ordinary shares of GBP 0.25 each in the company with institutional investors at a price of GBP 1.70 per share to raise approxim…
Romag Holdings said 17 July 2007 that it proposes to place 4,543,619 new ordinary shares of GBP 0.25 each in the company with institutional investors at a price of GBP 1.70 per share to raise approximately GBP 7.7 million before expenses representing, 9.1% of the enlarged issued share capital of the company. The net proceeds of the placing will be used primarily to fund the expansion of the company“s photovoltaic production capacity. In the six months to 31 March 2007, sales of Romag“s PowerGlaz photovoltaic products grew by more than 80% over the corresponding period in 2006. Additionally, in March 2007, Romag announced the signing of heads of agreement for a contract to supply PowerGlaz products into Spain. Following this, on 20 May 2007, Romag announced that it had signed a formal contract for the supply of product to the value of EUR 80 million over a five year period, the first deliveries under this contract being anticipated in September 2007. A second production line, ordered in July 2006, was recently fully commissioned, increasing installed photovoltaic production capacity from 4MW to 12MW per annum. The board has now approved the purchase and installation of two further production lines, increasing annual photovoltaic production capacity to approximately 28MW per annum. Commissioning of these new lines is expected to take place in the summer and autumn of 2008. These new ordinary shares will rank pari passu in all respects with the existing ordinary shares in the company. It is expected that trading in the new shares on the Alternative Investment Market of the London Stock Exchange will commence on 24 July 2007. Commenting on the announcement, Lyn Miles, Chief Executive Officer of Romag, said: “The global PV market is expanding dramatically. This fund raising will help us to exploit the excellent market conditions and continue to grow the PowerGlaz business”.