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Ceres Power to raise 3.3 mln stg; shares surge
Nov 29 (Reuters) - British clean technology company Ceres Power Holdings Plc, which last month warned it may have to wind down its operations due to a lack of funds, said it planned to raise 3.3 million pounds ($5.27 million) through an equity issue.
The company also overhauled its management team, with David Pummell stepping down as chief executive. Steve Callaghan, a turnaround specialist, will work with the board while the company looks for a permanent CEO, it said.
Ceres' shares were up 77 percent at 3.67 pence at 1530 GMT on the London Stock Exchange.
The company said it planned to raise about 2.7 million pounds through a firm placing and the rest through an open offer to fund its planned expenditure.
The issue price for both will be 1 pence per share, a 49 percent discount to the stock's closing price on Wednesday.
Ceres, which last month failed to secure the required funding for its combined heat and power product business, said it was looking at an alternative business strategy which would involve a restructuring of the business, along with the capital raising.
The company had 10.2 million pounds ($16.4 million) in cash as of June 30. ($1 = 0.6257 British pounds) (Reporting by Monika Shinghal in Bangalore; Editing by Maju Samuel)
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