Edinburgh-based tidal power company Atlantis Resources said its raised £6.5 million via a placing of 11.88 million new ordinary shares at 55p a share. 

Atlantis said the proceeds will be used to fund project development activities across its project portfolio and working capital.

Tim Cornelius, CEO of Atlantis, said: “Through this successful placing both existing and new shareholders have demonstrated their support for Atlantis, our recent achievements and our ambitions for the future — both in the immediate and longer term. 

“We look forward to working with our partners to further the development of the tidal stream industry in the UK and beyond.”

The share placing price represents a discount of 20.3% to the closing mid-market share price of 69.p per ordinary share on April 19 and a premium of 4.5% to the company’s average volume weighted share price of 52.5p for the 30 trading days ended April 19.

The placing shares will represent 11.3% of the issued share capital of the company prior to the new issue.

Atlantis said it is in the process of finalising its financial statements for the year ended December 31, 2015 and will be releasing its annual report on or before May 31.

“Whilst the financial statements have not yet been signed off by the company’s auditors, the draft financial statements show a profit for the year to 31 December 2015 of £2.7 million,” said Atlantis.

“The profit is driven by an accounting gain on the acquisition of Marine Current Turbines Limited from Siemens AG in July 2015.”

The consolidated cash position of Atlantis at December 31 was £13.6 million.