With the completion of its share issue, Green Hydrogen Systems has secured the necessary peace of mind and flexibility to execute its medium-term strategy.

With the complete capital raise, the electrolyser provider is now well-padded for the period up to 2025 with the completed capital raise.

The capital raised will primarily be used to improve the company’s research and development, scale up production capacity and expand the organization, says CEO Sebastian Koks Andreassen tells MarketWire.

The recently completed share issue secured gross proceeds of DKK 469m (EUR 62.97m). In addition, A.P. Møller Holding and ATP have made a loan facility of a total of DKK 250m available at an annual rolling interest rate of 15%.

The loan initially runs for three years.

Deducting the advisory costs, the total amount is DKK 679m, which will be available to the company within the next few days.

Green Hydrogen Systems has previously announced that a new capital raise is expected after 2025. Whether this will be through another share issue is still too early to say.

”It is too early to say how we will raise money at that time. What we have announced in our medium-term goal for 2026 is that we expect a positive operating profit, EBITDA, and that does not pay for the capital investments, so we need to find funds to cover ourselves until we have free cash flow,” says the CEO.

The total net capital raised is slightly higher than the DKK 600m initially announced by Green Hydrogen Systems.

”We’re coming in a little bit higher, and that will give us additional cushioning. It corresponds very well to the amount we had initially targeted,” says Koks Andreassen.

The support for the share issue has been widely distributed among both private and institutional investors. The exact distribution is not commented on.

A total of 104.3 million new shares have been issued and will be admitted to trading on Nasdaq Copenhagen on July 10, says Green Hydrogen Systems’ CEO.

Three primary areas

With the successful capital raising in the bag, Green Hydrogen Systems can now focus on developing and improving its business.

The electrolyser manufacturer will concentrate on three areas in particular.

”It will be for continued investment in three primary areas: Our R&D - our development to make our products even better, more efficient and more mature. There will still be a small part for scaling up our production capacity, where we have expanded the factory, but we still need funds to automate and robotize,” says Sebastian Koks Andreassen and continues:

”Then the mean will bolster our organization and essentially our commercial area, where we need to build an even stronger sales force, because we need to sell these products now, and for the establishment of our future service organization.”

On the development side, the company will, among other things, work on finalizing and commercializing its X-series of electrolysis plants, Green Hydrogen Systems has previously stated.

Sold own subscription rights

On June 20, Sebastian Koks Andreassen chose to sell more than 1.3 million of his subscription rights.

”I have acted as a private individual in connection with this subscription issue.”

”I have a significant amount of shares in the company of around 268,000-270,000 shares, and I have seen this as a suitable exposure in an exciting company,” he explains to MarketWire.