Eco Buildings Group PLC has conditionally raised £2.35 million through a placing and subscription of new shares as the company expands its modular construction manufacturing operations in Albania.
The fundraising was arranged through Tavira Financial and includes 18.33 million placing shares along with 1.25 million subscription shares priced at 12 pence each.
According to the company, net proceeds of approximately £2.2 million will primarily be used to install a second glass fibre reinforced gypsum (GFRG) manufacturing line at its Albanian production facility. The remaining capital will support general working capital requirements.
Eco Buildings said the second production line is expected to be installed within three to four months and become operational shortly afterward.
The company stated that the expansion is intended to support increasing order demand in Albania.
The announcement follows the company’s recent collaboration with Balfin Group, one of the country’s largest investment groups.
The investment round remains subject to shareholder approval at a general meeting scheduled for 4 June in London.
Directors holding shares in the company said they intend to vote in favor of the resolutions. Their combined holdings represent approximately 14.5% of the company’s existing issued share capital.
If approved, the new shares are expected to begin trading on AIM around 5 June.
Following admission, Eco Buildings’ total issued share capital will increase to approximately 140.99 million ordinary shares.
Investors participating in the placing will receive one warrant for every two subscribed shares. These warrants can be exercised at 22 pence over a two-year period following admission.
In addition, Tavira Financial will receive 1.1 million warrants exercisable at the 12 pence placing price during the same timeframe.
The company noted that the placing price represents a discount to recent trading levels, while the warrant structure provides additional upside potential if share prices increase.
Eco Buildings develops modular construction systems using GFRG panels, which are lightweight building materials designed for scalable manufacturing and rapid on-site assembly.
The company said the technology offers cost and construction time advantages compared to traditional building methods.
In recent years, Eco Buildings has expanded its presence in Albania, where demand for affordable and quickly deployable residential and commercial buildings has continued to grow.
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