Portfolio company Ceres announces ?20m funding

RNS Number : 0659M

IP Group PLC

11 July 2014

 

 

FOR RELEASE ON

11 July 2014

IP Group plc -Portfolio company Ceres Power announces £20m funding round

IP Group plc (LSE: IPO) ("IP Group"), the developer of intellectual property based businesses, is pleased to note that portfolio company Ceres Power Holdings plc ("Ceres" or "the Group" or "the Company"), a world-leading developer of low cost, next generation fuel cell technology for use in distributed generation and other applications, has today announced it intends to raise approximately £20 million (approximately £19.6 million net of expenses) by way of an oversubscribed placing at 8.5 pence per share.

The purpose of the Placing is to provide the Group with sufficient working capital funding to (i) respond to the commercial interest it has generated until the next stage commercial agreements are in place and to progress the Ceres Steel Cell technology and manufacturing roadmaps in order to maintain the Group's technology advantage; (ii) provide enough growth capital funding to allow the Group to explore and capture more value in higher power applications; and (iii) provide the Group with the flexibility to increase manufacturing volumes, as driven by commercial engagements.

The Ceres Directors believe that the net proceeds of the placing coupled with the cash and cash equivalents which the Group holds, will provide sufficient capital for Ceres to make substantial commercial and technical progress well into 2016. By this time, the Ceres Directors believe that the Group should have secured several second stage development agreements for the residential market and validated the potential of the Ceres Steel Cell technology to address higher power applications for the business market.

IP Group has agreed to subscribe for 47,058,822 placing shares, representing approximately £4 million. Following the placing, IP Group will hold 179,558,822 ordinary shares in the Company, representing 23.2% of the enlarged issued share capital.

The Directors of Ceres believe that the Ceres Steel Cell technology provides the step change in cost that fuel cells need for widespread adoption and that it therefore has the potential to transform the way that power is produced. The Group's next generation Steel Cell technology operates on mains natural gas and the Directors believe that it has the capability of being able to be mass produced at an affordable price for both domestic and business use.

Commenting on the placing, Alan Aubrey, Chief Executive of IP Group, said: "This level of funding recognises the significant progress the company has made over the past year and is an endorsement of the management team and its strategy for the company. We are especially delighted with the quality of investors that we have attracted to the register."

Phil Caldwell, Chief Executive of Ceres, commented: "We believe that fuel cells are a technology whose time has come and Ceres Power is now well positioned to be one of the leaders in this rapidly growing industry. This funding will enable the company to advance the development and commercialisation of our low cost Steel Cell technology across different markets and applications, with our world class partners."

The Placing is conditional upon, inter alia, the passing of Resolutions by the Shareholders of the Company at a general meeting to be held on 29 July 2014.

For more information, please contact:

IP Group plc	www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer	[phone]
Liz Vaughan-Adams, Communications	[phone] / [phone] [e-mail]
FTI Consulting
John Dineen	[phone]

Notes for editors

About IP Group

IP Group is a leading UK intellectual property commercialisation company, developing technology innovations primarily from its research intensive partner universities. The Group offers more than traditional venture capital, providing its companies with access to business building expertise, networks, recruitment and business support.

IP Group's portfolio comprises holdings in around 90 early stage to mature businesses across the Healthcare, Biotech, Cleantech and Technology sectors. These businesses include Oxford Nanopore Technologies, the DNA sequencing development company, Revolymer, best known for its removable chewing gum and Xeros, which has received many accolades for its revolutionary clothes washing techniques with a much reduced requirement for water.

For more information, please visit our website at www.ipgroupplc.com.

About Ceres Power

Ceres Power is a world leading developer of low cost, next generation fuel cell technology for use in decentralised energy products that reduce operating costs, lower CO2 emissions, increase efficiency and improve energy security.  The Ceres unique patented Steel Cell technology operates on mains natural gas and is manufactured using standard manufacturing processes and conventional materials such as steel, meaning that it can be mass produced at an affordable price for domestic and business use.

www.cerespower.com

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