InfraStrata plc, the UK quoted company focused on the development of natural gas storage capacity, has raised £1.5 million (before expenses) through a placing of 125,000,000 new ordinary shares of 0.01p each in the Company at an issue price of 1.2 pence per share.
 
The Company continues to make progress with all potential equity providers for the Islandmagee gas storage project (the "Project") and detailed negotiations are underway with numerous parties who are at various stages of their due diligence and term sheet discussions. The initial review of the additional funding offer that was received in the week commencing 17 December 2018, as notified in the announcement dated 27 December 2018, has now been completed. Due to the nature of this additional potential equity provider and their indicative terms, InfraStrata has agreed that they will now proceed to the next stage and undertake detailed due diligence work. Specialist advisers have already been appointed by this potential equity provider and work has commenced, which is expected to take around six weeks. 

John Wood, Chief Executive Officer, commented: 
"Whilst considering the undertaking of an equity placing at this stage, we have analysed the effect of further dilution versus the reduction of project risk, aiming to facilitate a better equity retention position in the longer term.  We have undertaken the placing on terms we believe are in the best interests of the Company at this time and I am pleased to confirm that no warrants will be issued as part of this placing. I understand that many shareholders are concerned about dilution, but we believe this placing is in the best interests of our long-term goals".

KeyFacts Energy Industry Directory: InfraStrata