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31 min ago 2 min read
Membrane-less electrolyser firm Clean Power Hydrogen (CPH2) has resumed trading after securing £3.5m ($4.7m) through a placing and retail offer, with investors indicating a further £4m ($5.4m) subscription as the company pivots to a capital-light licensing model.
The its retail offer met its £500,000 ($669,100) target, adding to a previously announced £2.53m ($3.4m) firm placing and £460,000 ($615,550) conditional placing.
Together with an intended £4m subscription from investors introduced by West Hill Capital, the fundraising could total around £7.5m ($10m), subject to shareholder approval and completion of the subscription.
The proceeds will fund the company’s pivot towards a , after an explosion occurred during the testing of its flagship 1MW unit. After admitting it did not have the “financial, engineering, or technical” resources to redesign the system, it scrapped plans to manufacture in-house.
The firm expects the model shift to reduce monthly cash burn from around £800,000 ($1.1m) to £210,000 ($281,000m) from October.
CPH2 has said the explosion was not caused by its own stack or separators. An exact cause is expected to be announced later this summer.
As part of the strategic overhaul, CEO Jon Duffy and chair Chris Train have also announced plans to step down once the transition is complete.
Last month, Irish developer Hidrigin signed a to become CPH2’s exclusive manufacturing partner in the UK, Ireland, the US, Canada, and Mexico, contingent on CPH2 raising at least £3m ($4m).
