Advance Energy PLC (LON:ADVAD) told investors it has raised £425,000 of new capital in a share placing and director share subscription as it works to advance a reverse takeover opportunity.
The injection of capital is expected to be sufficient to enable management to select, negotiate and pursue such an acquisition the company said in a statement.
A transaction to reverse new assets into the listed vehicle will in-turn come with further equity issues and new equity fundraising.
"Over the last six months the focus of the board has been on progressing the deal pipeline,” said interim chief executive Larry Bottomley.
“Screening and due diligence has progressed and the company is now focused on a select number of potentially value-accretive deals with an emphasis on proven resources that are intended to provide immediate and sustainable cash flow generation.”
"We are now at the stage where we call on the support of third parties to contribute to the relevant due diligence required to progress an acquisition and this funding will allow that work to be undertaken.
“While the board is optimistic in progressing an acquisition there is no guarantee at this stage that any transaction will be completed. We will keep the market updated as these projects develop."
Advance Energy is issuing 405.8mln new shares in the placing, at an issue price of 0.085p, and participating investors will receive share warrants (exercising at 0.13p up until July 2025) as part of the deal.
It comes after the company become a cash shell under AIM rules in May, following the expiry of the Buffalo licence.