A share offer announced by an organics recycling firm has been over-subscribed by 42%.
TEG said in a statement that when the offer closed at on 21 June valid acceptances had been received for 95,190,784 new ordinary shares from qualifying shareholders.
The statement added: “All entitlements will be met and excess applications will be scaled back with 66,940,435 Open Offer Shares being issued pursuant to the Open Offer. Consequently, the company has conditionally raised a total of approximately £2m before expenses through the Open Offer.”
The offer remains conditional on shareholder approval.
TEG announced it was making the fund-raising share offer on 6 June after it failed to find a buyer. Shares in the firm fell by more than 50% on the announcement.
Chief executive Mick Fishwick, above, told MRW at the time the firm had had problems converting the “offers on the table into an end result”. He said shareholders had been getting concerned that a buyer had not been found, so the company needed to raise capital another way.
The firm’s preliminary results for the year to 31 December 2011, announced the same day, showed a pre-tax loss of £8m, from a £628,000 loss in 2010. Revenue for 2011 was £17.8m, down from £20.7m.
The company builds AD and composting plants for third parties, as well as running its own.
Trading results were ahead of market expectations with “group plant operations producing significant growth in both revenues and profits”.
Fishwick said the firm’s plant operations were “going great guns, with all plants in profit and processing record volumes last year and demand for those facilities is going through the roof.”
Volumes at the firm’s plants grew by 32% to 244,000 tonnes in 2011, and average gate fees rose by 16%.
Fishwick said the projects side of the company had been hit by financing problems causing delays and the consequences of local authorities switching to outsourcing.
He said this presented opportunities to expand TEG’s plants operations, but there remains “a big disconnect between what local authorities and the industry want and what the financial markets will fund”.