Cindrigo Holdings (LSE:CINH) has signed binding agreements with a strategic investor group for more than £11m of investments and guarantees, including a £6.7m equity subscription and €3m into Fuelwood to create an integrated Finnish wood‑pellet business that will be the primary customer of the group's Finnish heat operation.
The investors will subscribe approximately £6.7m of new Cindrigo shares at 12p each (55.71m shares, c.14.3% of the enlarged share capital), will contribute €3m to the Fuelwood JV, have committed up to £2m to be drawn if existing warrants are not exercised, and hold a further optional £2m subscription
Fuelwood will be a jointly funded and operated sustainable biomass joint venture initially capitalised at c. €4m via three‑year development loans at 9% per annum (Investors €3m, Cindrigo €1m), with Cindrigo holding 20% initially, providing management services under a Management Services Agreement expected to generate €75,000 per month in 2026 (~€1m) and targeting c.80,000 tonnes per annum of pellet production by the end of 2026 and c.400,000 tpa long‑term (implied revenues c.€20m and c.€100m respectively).
Cindrigo retains the right to increase to a majority stake, will apply for admission of the subscription shares on receipt of funds, expects initial pellet volumes during 2026 with a rolling annualised rate of c.80,000 tpa by year‑end.
"This announcement marks the transition from strategic intent to execution of both a funding and strategic partnership to support the Group's expansion," said CEO Lars Guldstrand.
