Zenith Energy (LSE:ZEN) raised fresh capital through a share and warrant financing in Norway, with the warrants running for two years from issue.
The private placing, to institutional investors in Norway, aims is slated to bring in £2.116 million (NOK 27.5 millione, or US$2.84 million), issuing 50 million new shares, at price of NOK 0.55 each.
The renewable energy company said it will direct the proceeds toward due diligence and construction of the biogas project it announced a day earlier. Some of the funds will also cover legal costs tied to international arbitration proceedings brought by Zenith's wholly owned subsidiaries.
The remainder will support development of the company's solar portfolio, including construction of ready-to-build sites, alongside general working capital needs.
Chief executive Andrea Cattaneo said the solar pipeline is nearing a 200 MWp development milestone, and that the move into biogas builds on Zenith's existing methane gas sales expertise through renewable biomethane production.
"The additional funding strengthens the company's balance sheet, enables us to continue advancing each of the key pillars of our strategy, and positions Zenith to deliver further operational and corporate milestones," Cattaneo said.
Zenith started construction on its first solar production facility in July, with further ready-to-build projects expected to follow into construction and production, and some potentially monetised depending on market conditions.
