Green oil technology business Hydridec Group is set to raise £20 million through the placing of new shares at 12.5p each, while a further £4 million is to be raised via an open offer to existing shareholders.

Hydrodec says that it intends to use the proceeds to pay down the £25.3 million of debt it currently holds on its balance sheet.

Ian Smale, CEO of Hydrodec, comments, ‘This fundraising is a significant milestone for Hydrodec for a number of reasons. Firstly, it enables the company to resolve issues relating to its balance sheet and positions it far more strongly – and sustainably – in terms of its financing.

‘Secondly, the support of shareholders – new and existing – is a very real endorsement of the work undertaken this year in taking the business forward with two key transactions in the US and UK. Thirdly, it provides expansion capital that will enable us to take additional near term opportunities to develop Hydrodec and expand our international footprint further. Finally, it has introduced several high quality new institutional shareholders to our register, whom we welcome.’

In early September, Hydrodec acquired the principal business and assets of OSS, a collector, consolidator and processor of used lubricant oil and seller of processed fuel oil.