Corre Energy, a renewable energy storage developer, has managed to amass €2.76 million through share dealings within the past week. The aim of these dealings is to secure funding to maintain company operations while negotiating with investors who may acquire a substantial stake in the firm.
In an announcement this Wednesday, the firm confirmed that shares worth €640,000 were sold to existing shareholders just the day before. The company also reported that €2.12 million were raised through share placement with both the company’s founders and a consistent, prominent investor just last week.
The drive to raise funds is conceived as a short-term solution while the company carries on discussions with third parties expressing an interest in executing a notable strategic investment. This initiative comes on the heels of a dwindling cash reserve that sat at a mere €1.08 million by the close of the previous year.
Notable founding shareholders of Corre include former director, Darren Patrick Green, who relinquished his position in February, chief executive Keith McGrane, and entrepreneur Brendan Boyd.
Company shares have seen a decrease of above 85% within the past year. Though partly attributed to an industry-wide collapse in the green energy sector following a drop in energy costs and an upswing in interest rates which heavily burden capital-dependent sectors, some observers also fault Corre. These analysts suggest that a lack of clarity about the economic specifics of their various initiatives has left investors uncertain about their profitability prospects.
There are a number of projects in Corre’s pipeline. The Zuidwending (ZW1) venture in the Groningen region of the Netherlands is the furthest progressed and is projected to contribute up to 320MW of electricity to the grid by the end of 2026. Other significant projects in the works are the 320MW Green Hydrogen Hub project in Denmark, another facility in the Netherlands (ZW2), as well as an ambition to establish three compressed air energy storage plants in Germany, in caves secured during the prior year.