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Flowgroup eyes £20m back-up plan
Embattled boiler technology developer Flowgroup (FLOW:AIM) may be be forced into a hugely discounted emergency fund raise. The £20m cash call would be needed if the company cannot find a buyer for its independent household energy supply business, Flow Energy. It has 270,000 consumer customers.
Talks with several parties have seen a preferred buyer emerge although a deal looks far from certain. New funding, if required, would be priced at 1.5p per share, a 53% discount to the prevailing share price before news broke.