UK-based sustainable fuels developer Velocys has failed to fulfil conditions linked to an $15mn investment by Carbon Direct Capital, it said today, causing its shares to drop by more than 70pc and leaving it scrambling for additional investments needed by the end of the year.
The investment by Carbon Direct Capital was subject to Velocys raising an additional $40mn by 31 October, which it has not done, Velocys said. It will continue to be in active funding discussions with all strategic investors but "it has become clear that any investments into the company resulting from these discussions is unlike to be on the same terms as the previously announced Convertible Loan Notes," it said.
Velocys anticipates extra funding will be required before the end of this year and said its board is "prudently exploring near term funding options."
Velocys has been granted £27mn ($33mn) by the UK government for a 37,400 t/yr waste-to-SAF plant at Immingham, eastern England, which was to scheduled to be operational in 2028. Velocys has also been awarded an extra £2.5mn to develop an e-fuels demonstration plant.
