Alternative fuels specialist Quadrise Fuels International PLC (LON:QFI) has unveiled plans to raise up to £3.5mln that will allow it to build on the “considerable” commercial momentum generated so far this year.
It has locked down the first tranche of a £2mln convertible bond, while it is also allowing existing investors to follow their money with an open offer of stock worth as much as £1.5mln.
The new equity will be priced at 3.96p, with investors receiving a warrant for every two new shares they buy.
The warrant provides investors with the opportunity to acquire new shares at 7.48p each sometime in the future.
Chairman Mike Kirk said the fresh inflow money will allow Quadrise to convert the multiple opportunities it has created this year into trial projects and commercial contracts.
“This includes, for example, the activities in Kuwait, Saudi Arabia, Europe and Morocco, alongside the upstream market initiative with Merlin Energy Resources that we announced on 14 August,” he added.
The initial £2mln convertible provides Quadrise with funding out to next June and there is a further identical sum available through the company’s backer, a firm called the Bergen Global Opportunity Fund.
Quadrise has developed MSAR, a synthetic heavy fuel oil which is around one-third water.
With a couple of simple, relatively cheap tweaks to a ship’s engine or a power station’s boiler, it can be used as a direct replacement for diesel or heavy fuel oil.
Because of the high-water content, the combustion temperature is much lower which reduces harmful emissions.