It aims to raise at least £10mln to aid the company’s new business plans, following a recent strategic review.
David Dinwoodie named new CEO
Prior to the share placing, the company will conduct a 100-for-1 share consolidation, and the placing shares will be priced at no less than 75p.
Funds will be injected into Hydrodec operations in North America, fund an upgrade to the North American plant to increase capacity, fund research and development, repay £3mln and cover the costs of Hydrodec’s new proposals.
The company also named chief financial officer David Dinwoodie as the company’s new chief executive.
Dinwoodie said: "I am delighted to be appointed as CEO at this inflexion point for Hydrodec.
“This is a relaunch for the company - an exciting opportunity for the business, with a strong platform for growth.
“With this raise we can now inject essential working capital into our core US business to broaden access to substantial volumes of reliable and consistent supplies of feedstock.
“This will enable us to deliver necessary improvements to our US plant utilisation; develop a targeted utility sales strategy; introduce new financial systems and a strengthened balance sheet to support competitive terms on which to buy feedstock and maximise the value of our world leading technology to a wider group of industrial oils.”
Hydrodec shares were down 0.51p or 40% changing hands at 0.76p.