LONDON (ShareCast) - (Sharecast News) - Gelion said on Friday that it has raised £10m through a placing and subscription to support its energy storage development programmes, with an additional retail offer to follow later this month.

The AIM-traded firm said the fundraising comprised the issue of 50 million new shares, including £7.6m from the placing of 37.97 million shares and £2.4m from the subscription of 12.03 million shares.

It said it would also offer up to £500,000 of new shares through a retail offer conducted via the Winterflood Retail Access Platform (WRAP), which would close on 23 October, with results due the following day.

All elements of the fundraising are conditional on shareholder approval at a general meeting scheduled for 5 November.

A circular and notice of meeting will be posted to shareholders by 20 October and made available on Gelion's website.

Several directors participated in the fundraising, including founder Professor Thomas Maschmeyer, who subscribed for 50,000 new shares, taking his holding to 17.9 million shares, or 7.82% of the enlarged share capital, assuming the retail offer was fully subscribed.

Chief executive Dr Steve Mahon subscribed for 125,000 shares, while non-executive directors Dr Graham Cooley, Michael Davie, John Wood and Joycelyn Morton subscribed for between 75,000 and 625,000 shares each.

Gelion said the directors' participation constituted a related party transaction under AIM rules.

Independent director Amit Gupta, after consulting with nominated adviser Strand Hanson, concluded that the terms were "fair and reasonable insofar as shareholders are concerned."

Admission of the new shares to AIM was expected on or around 7 November, or no later than 17 November.

At 1244 BST, shares in Gelion were down 2.04% at 24p.

Reporting by Josh White for Sharecast.com.

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