Participated · Equity · Feb 2021

Aeristech Limited entered a subscription agreement on February 25, 2021 for a pre-IPO private placement of 2,125,000 shares at £2.40 per share. The placement is expected to raise gross proceeds of £5,100,000 at a fully diluted post-money valuation of £37,800,000. Investors in the transaction included Vela Technologies PLC, Sabien Technology Group Plc and SAIC Venture Capital. Vela subscribed for 145,833 shares for proceeds of £350,000 (acquiring a 0.92% stake) and Sabien subscribed for 41,667 shares for proceeds of £100,000 (acquiring a 0.3% stake). The company also issued 36,458 warrants to Vela and 10,417 warrants to Sabien, exercisable at £2.40 per share for a two-year period. The transaction was structured as a pre-IPO private placement of equity with attached warrants. Aeristech develops a patented Hybrid Turbocharger Technology (HTT) system intended to enable smaller engines to deliver the performance of larger ones. The HTT system is claimed to generate 20–30% fuel savings and to reduce exhaust emissions by 20–30%. The company has used incubation support from The Carbon Trust during initial development. Aeristech has secured external funding to advance its programmes and testing. The recent financing will be used to progress testing programmes for the HTT system with two global vehicle manufacturers. The company is based in Birmingham, UK.