eEnergy Group plc has raised £6.3 million in emergency funding and plans to raise another £2m following a ‘turbulent’ summer.
This week the company said it must source new capital to refinance the business, enable it to pay overdue creditors and ‘take advantage of the many opportunities which exist in its markets’.
It raised the £6.3m via a placing priced at 0.3 pence per share. It now intends to raise another £2m via a separate retail offer at the same price.
It said the fundraising proceeds ‘will not be used towards repayment of the company’s £2.5m loans from shareholders’.
eEnergy, founded in 2018 and based in London, is a designer and installer of Solar PV, LED lighting, battery storage and EV chargers serving public sector and commercial portfolios.
With customers including UK schools, it claims to reduce customers’ energy costs by up to 70% and takes no upfront payments.
However following the departure of Harvey Sinclair at the end of May – and a change of chair – then-CFO John Gahan was appointed interim CEO of the firm, listed on London’s junior AIM market.
He reviewed the company’s sales pipeline and, concluding that this was materially overestimated, issued a sharp downgrade to its full-year revenue and adjusted EBITDA expectations – from £38 million to £32m, and £4.5m to £1.7m, respectively. This morning eEnergy reconfirmed these restated projections.
He also launched a major restructuring programme to reduce operating costs from £6.3m to around £2m. Gahan was recently made permanent CEO while the company secured an extension to repayment of an existing £500k loan, as well as a new £500k loan from shareholder Nigel Burton, following delays to payments from its ‘Mace’ sites, 65 of which are now operational.
“Installations under the Mace programme were substantially completed before 30th June 2026. However, due to setbacks in the submission and approval of relevant contract documentation by eEnergy, the company has experienced delays in the receipt of approximately £2.8m under the programme,” it stated earlier this week.
“Of the total outstanding amounts to be collected, £1.9m relates to the solar and battery installations, which is expected to be collected over the next six months. Approximately £500,000 relates to EV chargers and £400,000 relates to LED work. The EV chargers and LED cash is expected to be collected within two months.”
It added: “The ongoing delays in receiving the Mace cash have severely impacted eEnergy’s ability to pay creditors as they fall due and are adversely impacting the company’s ability to source materials and services to continue current installations effectively.”
eEnergy’s share price is down 66% in the year to date and has a current market cap of £5.6m.