Getech launches share placing to deliver sustainable growth

Getech, the geoenergy and green hydrogen company, is to raise £1.7m in a share placing.

The Leeds-based group wants to use the new cash to “deliver further progress on sustainable growth, whilst also strengthening the balance sheet and enabling a modest spend on targeted research and development activities”.

The placing plans to raise £1.5m from institutional investors, supported by directors, and £200,000 from retail investors.

The price is at an 11% discount to Getech’s closing share price last night.

Getech’s chief executive Richard Bennett said: “In the last 12 months we have significantly reduced group costs, refocused the business on our core expertise of selling sub-surface data and we have worked hard to develop an expanded sales pipeline worth £9.6m.

“The proposed placing will deliver financial stability, enable us to accelerate conversion of the sales pipeline and provide further R&D investment with the objective of the business becoming cash-flow positive on a sustainable basis this year.

“We are also ensuring that the opportunity to be involved in the placing is being made available to all our shareholders.”