Swedish marine energy company Minesto is seeking to raise €10 million (US$12.7 million) through the listing of its shares on First North at NASDAQ Stockholm to fund the commercialisation of its tidal power plant technology.
Minesto’s tidal power plant, Deep Green, generates electricity from tidal and ocean currents. The company has invested more than €20 million since 2006 to develop the patented technology. Deep Green has been producing electricity off the coast of Northtern Ireland for more than two years, and is the only proven marine power plant that operates efficiently in areas with low velocity currents. Minesto intends to use the net proceeds of the placing to fund the company to a commercial phase.
“In the last year, Minesto succeeded with its plan to secure an agreement for the first tidal park, ensuring investments of € 16.5 million from the Wales government and KIC InnoEnergy, secure network capacity for our project in Wales, and created the organisation we need to take the next step toward a large-scale electricity generation,” said Anders Jansson, CEO of Minesto. “This combined with the increased global interest in our products, the board and the management has decided that a listing is the next step in the development of the company.”
The funds from the issue plus a possible overallotment of an additional maximum of €1.8 million will be used to finance the commercialisation of the Deep Green. The main owners, Midroc New Technology and BGA Invest, have committed to subscribe for shares for approximately €6.3 million in the issue, with the remaining €3.7 million secured through a guarantee consortium syndicated by G&W Fondkommission.
The shares are expected to start trading on 9 November, should the application for listing be approved by regulators. The subscription period end on 21 October.
Earlier this year Minesto secured an investment of €13 million from the European Regional Development Funds through the Wales government. KIC InnoEnergy also recently decided to invest €3.5 million in the company.
The Swedish company is now prepared to become one the first companies in the world to build a commercial marine power plant array.