(Alliance News) - Equipmake Holdings PLC on Monday signed a repowering contract with a London-based touring company, and announced a fundraise to support its pipeline of projects in 2024.

Equipmake is a Norfolk, England-based developer of electrification solutions for the automotive, aerospace, marine, construction and bus markets.

The company secured a GBP2.0 million contract with Golden Tours, a London-based sightseeing company, to repower its tour buses with the company's zero-emission drivetrain package. The contract increases Equipmake's orderbook to GBP13.1 million.

Chief Executive Officer Ian Foley said: "Golden Tours is a leading tour and activity company in London and across the UK...We are delighted to announce our first contract with Golden Tours and we are confident that our integrated zero emission drivetrain system will provide material benefits for the group by extending the lifespan of these vehicles and also increasing the reliability of the buses by a significant margin."

The company also announced a fundraise for up to GBP4.3 million, through a placing, subscription and retail offer of new shares at a price of 6p each.

The placing will be for around GBP3.2 million, and will be conducted by way of an accelerated bookbuild. The subscription will be for 13.2 million shares at the issue price, raising up to GBP800,000, while the retail offer will raise up to GBP300,000 from existing retail investors.

Admission of the new shares to trading on the Aquis Apex exchange is expected to occur on or around February 16.

Equipmake said that proceeds from the fundraise will provide working capital for ongoing and future projects, to support the company's international expansion plans and to develop its pipeline of opportunities in the US.

As of Monday, Equipmake had an orderbook of GBP13.1 million and had secured grant funding of up to GBP4.6 million. The company estimates the value of its near-term pipeline, being projects that will contribute to revenue for the financial year beginning in April, at around GBP24 million.

The majority of Equipmake' near-term pipeline revenue originates from the repowering of bus systems, while component and engineering projects comprise around 30%.

This offer is expected to satisfy Equipmake's near-term capital requirements, the company said, but added that additional fundraising may be required over the next 12 months.

Shares in Equipmake were 7.0% lower at 6.00 pence each on Monday afternoon on the AQSE in London.

By Hugh Cameron, Alliance News reporter

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