VPhase to raise £2m through placing

VPhase, the Manchester-based manufacturer of energy saving products, has announced plans to raise £2m through a share placing of 1m shares at 2p each – a discount of 23.8% on yesterday’s closing price of 2.63p.

The fundraising, which has been arranged by Ambrian Partners, will see the shares being placed with institutional investors but will need to be approved by the company’s existing shareholders. A general meeting has been called by the firm, which will be held at its headquarters in Castlefield, Manchester on October 25.

The company said that the funds would be used “to accelerate the Company’s commercial development within the UK and other geographical territories” and for general working capital. It is planning an awareness campaign for its voltage optimisation product, which will include a TV campaign to sell it to homeowners and ads in the trade press aimed at electricians.

VPhase has recently overhauled its management team, appointing NWDA vice-chairman Vanda Murray as its new chairman and replacing former chief executive Lee Juby with Rick Smith last week. At the same time, the firm announced that in the six months to June 30 its losses had widened to £727,000 despite doubling turnover to £121,000.

The firm said that Energetix (Nominees) and Energetix plc, which between them own 50.7% of the shares in VPhase, have signalled their intention to vote in favour of the fundraising, which is also being recommended by VPhase’s board.

VPhase chief executive officer Rick Smith said: “The Board is delighted to have secured this funding, and looks forward to working alongside our existing and new shareholders to drive the business forward. 

“This is an exciting stage of VPhase’s development, as we continue to accelerate commercial development of the product in the UK, and then expanding into other geographies.”