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Romco Raises $6.2m in Series A Equity Round and Reaches a Valuation Of $180m

Romco, an international metals recycler producing clean and sustainable essential metals that decarbonise the global supply chain, has announced a $6.2million investment to expand its operations and immediately drive revenue growth.

“Ex-London Plumber Taps African Aluminum Scrap as Prices Soar”, Mark Burton from Bloomberg writes about Romco Group (read article here) regarding Romco’s recent Series A equity raise. “London-based Romco raises $6.2 million to fund growth plans,” Mark continues, “as deepening shortages push aluminium to record highs, a London-based startup is raising cash to boost production of the critical industrial metal from untapped reserves of scrap in Africa’s biggest cities.”

“We have seen huge growth over the last two years, something that is clearly giving our investors confidence and positioning Romco as an innovative business. The additional capital will enable upgrades to existing facilities and increase feedstock capacity for them to process into quality, truly low-carbon materials.”

— Raymond Onovwigun, Romco Group CEO

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In order to build on significant growth in 2021, with quarterly revenues of $9.1m set to more than double to $20-$25m quarterly for 2022, and recycling levels up 220% on the previous year, Romco has sold 3.39% of equity, valuing the company at $180m. The fundraise reflects the strength of Romco’s track record, its prospects, profitability and investor confidence in the Company’s medium to long-term growth strategy.

The Company has a very strong sustainable commodity investment case as it seeks to decarbonise the global metals supply chain. By 2025, Romco aims to produce 100,000 metric tonnes a year of metal through the operation of 7 plants. Romco produces metals for blue-chip automotive and industrial OEMs and its volume of recycling is expected to reduce the metal production industry’s CO2 by 338,000 t/CO2 per annum, equal to 354 round-the-world Boeing 747 flights, saving 1.2 mln mWh per annum of electricity, equivalent to powering 315,000 UK homes a year.

The Company also announces that is has signed up to private company share trading platform Asset Match, in order to provide more investors with secondary market access to its exciting investment case.

Romco founder and CEO, Raymond Onovwigun said:

“At Romco, we are transforming the production of metals to help solve the climate crisis. With demand for aluminium due to grow 80% by 2050, and current demand producing more CO2 than the entire aviation industries CO2 emissions, its production needs to urgently be decarbonised. This latest investment in our business will supercharge the growing recycling sector in Africa and provide a scalable model for other emerging markets.

“We have seen huge growth over the last two years, something that is clearly giving our investors confidence and positioning Romco as an innovative business. The additional capital will enable upgrades to existing facilities and increase feedstock capacity for them to process into quality, truly low-carbon materials.”

Romco currently operates metals recycling sites across Sub-Saharan Africa. The Company has plans to rapidly expand its facilities to increase the rate of metals recycling in Africa, where only 1% of the world’s recycled aluminium is processed. Romco is perfectly positioned to capitalise on the growth of this market, aiming to increase Africa’s rate of recycling to 5% in the next five years by opening five more factories to produce secondary materials from all coasts of the African continent.

Romco has built its business leveraging technical know-how and investing in local supply chain partners who can grow together as the business continues to evolve. This brings significant first mover advantage through a Small Business Buying Programme that’s creating thriving local sustainable businesses.

More than 3% of the world’s power is used to produce aluminium with some estimates putting the cradle-to-gate CO2 emissions as high as 20 metric tonnes for every one tonne of aluminium produced. Romco’s recycling facilities produce aluminium using 95% less power and water.

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