Atome fundraising granted EIS status by HMRC

14th Mar 2024 13:17

(Sharecast News) - Atome announced on Thursday that HM Revenue and Customs had granted Enterprise Investment Scheme (EIS) status for investments made by qualifying individuals in its recent equity fundraise, announced on 19 February.

The AIM-traded firm said the EIS, a UK government initiative, incentivises investment in qualifying companies by providing tax benefits to eligible investors subscribing for new shares.

EIS income tax relief would not, however, be applicable to directors or employees of Atome.

Under the EIS, qualifying investors with a UK tax liability would be able to claim tax relief of up to 30% of their investment, capped at £1m per tax year, provided certain conditions were met by both the company and the investors.

Additionally, upon selling EIS shares, any increase in value from the investment could potentially be exempt from UK capital gains tax, provided income tax relief had been claimed and not withdrawn, and the shares were held for at least three years while the company remained EIS qualifying.

The board said the granting of EIS status expanded the company's potential investor base as it progressed towards the development and expansion of its projects.

Notably, Atome said it intended to finance its inaugural 145 MW project in Paraguay at the asset level through its subsidiary, Atome Paraguay.

Atome said its focus on producing 100% green fertiliser, slated to start in 2026, held global market potential, particularly in regions like the UK and Ireland where there was a growing emphasis on decarbonising the agricultural supply chain.

Looking ahead, Atome said it anticipated sharing further positive developments in the coming months as it approached final investment decision and secured asset-level funding for its world-scale 145 MW green fertiliser facility in Paraguay.

Additionally, Atome was actively engaged in other projects, including a 100 MW venture in Costa Rica and the phase two development of a 300 MW project in Paraguay.

At 1215 GMT, shares in Atome were down 0.95% at 52p.

Reporting by Josh White for Sharecast.com.