Australian bioenergy company Delorean Corporation (ASX: DEL) has secured a $2.2 million strategic investment from LMS Energy, one of Australia’s most established biogas operators, through a placement of 24.4 million shares at $0.09 each, giving LMS Energy a 9.97 per cent stake in the company.
LMS Energy brings significant operational depth to the partnership, currently running more than 70 biogas projects across Australia, New Zealand, and the United States. The investment is expected to strengthen Delorean’s positioning in the regional bioenergy market by bringing in a sector specialist with an established project track record, Tipranks reported.
Proceeds from the placement will be directed towards working capital and the expansion of Delorean’s bioenergy infrastructure development pipeline, which spans anaerobic digestion facilities that process organic waste into renewable gas and electricity.
Alongside the placement, Delorean will launch a Share Purchase Plan (SPP) on the same terms, targeting a further $2.2 million from eligible shareholders in Australia and New Zealand. If fully subscribed, the combined capital raising would total $4.4 million, which the company said would materially strengthen its balance sheet and position it to advance its project pipeline and potentially accelerate growth opportunities for existing investors in the bioenergy sector.
