Energy Absolute Plc (EA), a renewable energy and electric vehicle (EV) developer and operator, plans to raise funds in the second half of this year to grow its businesses and pay back part of the debt incurred under its past corporate bonds.
On Monday, Somphote Ahunai, chief executive and founder of EA, clarified the recent plunge of its share price and announced he already settled his debt by using money from the forced sale of his shares.
The company plans to issue debentures worth 5.5 billion baht, said Mr Somphote.
If the debenture issuance does not meet the target, the company plans to request loans from banks, he said.
If this second method does not work, EA will use cash on hand to support its businesses, said Mr Somphote.
Another fundraising scheme will be carried out to increase capital in SET-listed Nex Point, which produces battery-operated commercial vehicles. EA holds a 45% share in Nex Point, with the remainder held by Khanist Srivajiraprabha, chief executive and founder of Nex Point.
Shares of Nex Point also fell after the Songkran festival in April, with Mr Khanist also using a forced sale of the company's shares.
EA plans to increase capital in Nex Point to 10 billion baht, up from 8 billion at present.
The two fundraising schemes are expected to drive EA businesses, which include biofuel production, renewable power generation, and EV and batterymanufacturing, said Mr Somphote.
"We are determined to grow our businesses after overcoming the share problems," he said.
Shareholders of EA questioned the company's future revenue earnings because the adder tariffs at the company's six renewable power generation facilities are scheduled to expire over the next several years. These facilities include two 386-megawatt wind farms and four 270MW solar farms.
Mr Somphote said the end of adder tariff does not mean the entire revenue or profit evaporates.
The company can still earn money from selling electricity to Electricity Generating Authority of Thailand under power purchase agreements.
Revenue from electricity sales is expected to decrease from 9 billion baht next year to 5 billion in 2030.
In the EV business, EA set a target to sell 5,000 commercial EVs this year, based on higher EV demand.