Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Eco Buildings raises £0.83m to expedite modular housing production

(Sharecast News) - Modular housing company Eco Buildings Group announced on Thursday that it had raised £0.83m to help expedite the production of its modular housing units. The AIM-traded firm said the funds were raised via a subscription for 6,891,667 new shares, with support from existing shareholders and insiders including non-executive director and co-founder Dr Etrur Albani, and Andrew Allner, whose retirement as chairman was previously announced.

It said the subscription was finalised at a price of 12p per share, representing a 4.3% premium to the closing market price on 7 February.

Alongside the subscription shares, warrants over new shares would also be issued, with a three-year term and varying exercise prices over each 12-month period.

The board said the admission of the shares to trading on AIM was expected by 0800 GMT on 13 February.

Eco Buildings said the proceeds from the fundraising effort were earmarked to expedite the production of modular housing units, catering to the existing €114m order book over three years.

The company said it anticipated the first revenue influx to materialise in the current quarter, with ongoing revenue streams thereafter.

Additionally, funds would be allocated to support expansion into new geographic areas.

Dr Albani and Allner's participation in the fundraise constituted related party transactions under the AIM rules, but the independent directors, after consultation with its nominated advisor Spark Advisory Partners, said they had determined that the terms of their involvement were fair and reasonable for shareholders.

After admission, the total issued share capital of Eco Buildings Group would stand at 76,961,747 shares.

At 1333 GMT, shares in Eco Buildings Group were up 8.26% at 12.45p.

Reporting by Josh White for Sharecast.com.

Share this article

Related Sharecast Articles

Frontier IP appoints new finance chief
(Sharecast News) - Intellectual property commercialisation specialist Frontier IP announced the appointment of Jo Stent as its new chief financial officer on Friday, effective from 22 April.
Directa Plus asphalt technology laid at Imola Circuit
(Sharecast News) - Graphene nanoplatelet specialist Directa Plus announced on Friday that 'GiPave', an asphalt solution incorporating graphene and recycled plastics, was being installed at the Imola Circuit ahead of the Emilia-Romagna Grand Prix in May.
Huddled Group buys Food Circle for £0.3m
(Sharecast News) - E-commerce investor Huddled Group announced the acquisition of online retailer Food Circle Supermarket on Friday, for total consideration of up to £0.3m.
Bens Creek shares fall as it moves mine into care and maintenance
(Sharecast News) - Shares in North American metallurgical coal miner Bens Creek were sliding on Friday afternoon, after the company issued an update on its operations and working capital position, confirming that its West Virginia mine was moving into care and maintenance.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.