Synthetic fuel oil firm confirms fundraising speculation
Alternative fuels firm Quadrise Fuels International PLC confirmed in a press release Wednesday the speculation that it is to embark on a fund raising effort, Ship & Bunker reports.
"[QFI] has noted the press speculation regarding a fundraising and confirms that it is in advanced stages of a placing of up to 50,000,000 new ordinary shares of 1p each in the Company at a price of approximately 7p per share," it said.
The firm said it expects to be in a position to confirm the details of the placing by Friday, October 5, 2012.
Quadrise produces a Multiphase Superfine Atomized Residue (MSAR) Synthetic Fuel Oil (SFO), a proprietary water in hydrocarbon based emulsion fuel which it says can cost between 5% to 50% less than traditional fuel oil, bunker oil, or natural gas.
In August the firm said it signed a Memorandum of Agreement (MOA) with M/S Rafid Group for Trading & Contracting (Rafid) to formalise their relationship in anticipation of contractual commitments for the application the synthetic fuel oil in the Kingdom of Saudi Arabia, which also committed the parties to an exclusive relationship within the Kingdom.
The news sent shares in the firm soaring some 64%, and until October have largely traded above $10, closing September at $10.24 before subsequently declining to close Wednesday at $7.99.
