Corre Energy, a renewable energy storage company, announced on Tuesday that they have initiated a share sale for its existing investors. This is to prevent potential dilution of their stakes due to plaintiffs placing €2.12 million of equity with the founders along with a long-term stakeholder.
The firm is using the funds to maintain operations while discussions continue with third parties interested in contributing a “strategic investment” to a company that had a mere €1.08 million in cash reserves at the end of the previous year.
The sum that will be generated from the top-up share sale on Tuesday, conducted via an accelerated bookbuilding process by Davy, will be determined following the receipt of all bids for fresh equity from qualified stakeholders.
These shares are being offered at 46 cents, matching last week’s placement with the founders and an undisclosed long-term investor. Founding shareholders include former director Darren Patrick Green, who resigned in February, CEO Keith McGrane, and businessman Brendan Boyd.
In the past year, the company’s share value has dropped by over 85%. While this decrease is partly due to a general downturn in the green energy sector, driven by falling energy prices and the burden of raised interest rates on this capital-heavy field, it can also be attributed to concerns surrounding Corre’s failure to provide sufficient financial details about its projects to let investors measure their profit potential.
Corre’s most advanced undertaking is the ZW1 project in Groningen’s, Netherlands, capable of delivering up to 320MW of electricity to the grid and expected to become operational by end of 2026.
The company’s main projects also consist of Corre’s 320MW Green Hydrogen Hub project in Denmark, an additional facility in the Netherlands (ZW2), and a proposal to create three compressed air energy storage units in caverns acquired last year in Germany.