DG Innovate PLC on Monday said it will issue new shares for subscription to raise £400,000, alongside a broker option for existing shareholders.

The electric mobility and energy storage research and development company based near Bradford, England said new shares will be issued at a price of 0.12 pence each, representing around a 14% premium from the stock’s close in London on Friday.

Following the announcement on Monday morning, shares in DG Innovate were up 15% to the 0.12p offer price. It has a market capitalisation of £9.9 million.

DG Innovate also will offer a broker option to raise up to an additional £100,000 at the same price, allowing existing shareholders to participate in the fundraise.

Each share will be accompanied by a warrant to buy one more share at 0.18p within the next two years.

The funds raised will be used to support DG Innovate’s commercialisation strategy for its ’enhanced drive’ and ’enhanced battery’ technologies. Further significant progress has been made in both areas over recent weeks, the company claimed.

In particular, DG Innovate said the proceeds will allow milestones to be met in the first half of 2023, while its future funding needs will be reviewed towards the end of the half-year in light of the progress made and other sources of funding.

‘As set out in October last year we have a clear roadmap to commercialisation for both our electric mobility and energy storage technologies. Our goal is to ensure our world-class technology is appropriately exploited and brought to commercial scale production as quickly as possible,’ said Peter Tierney, chief executive officer of DG Innovate.

‘The proceeds of the fundraise will provide the funding for the next stage of our plan as we continue to develop our technology and advance commercial discussions, both with our existing collaboration partners and other potential launch customers.’

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