Member Article

Chester’s Flowgroup plc look to raise £23m

In an attempt to accelerate the development of a combination version of its Flow mCHP boiler and reduce supply chain and production costs Chester-based Flowgroup is looking to raise £23m.

It has announced a conditional Firm Placing to raise £21m and an Open Offer to raise £2m.

The Firm Placing is of 73,684,210 new Ordinary Shares at 28.5p each and the Open Offer is for Up to 7,043,896 new Ordinary shares at 28.5p.

The company also want to use the funds to expand its sales team and update its systems.

Chief executive officer of the Flowgroup, Tony Stiff, said: “We have demonstrated significant progress towards the commercialisation of Flow’s product division, alongside the success of our Flow energy division.

“The Board believes now is an appropriate time to accelerate the development and delivery of a range of low cost mCHP combination and system boilers.

“These developments would significantly expand the number of homes that Flow mCHP boilers can be installed into and accelerate the rate of doing so; we believe the Flow mCHP combination version can be in production by H2 2016, a year in advance of the current plan with current resources.”

This was posted in Bdaily's Members' News section by Sophia Taha .