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Enters into agreement with Rockpool Investments LLP for an additional £6.8 million EIS qualifying investment to fund two further 20MW Projects via SPVs
Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, announces that its wholly owned subsidiary, Plutus Energy Ltd, has extended its relationship with Rockpool Investments LLP and has signed a proposal for an additional £6.8 million equity investment, through Special Purpose Vehicles (SPVs) to limit dilution to PPG, for the construction of two further flexible power generation sites in the south of England. Both further projects, each of which will be allocated £3.4 million, will comprise of 20MW.
This agreement means that the Company now has proposals in respect to equity investment with Rockpool for four SPVs all in the south of England, the third and fourth established as Precise Energy Limited and Balance Power Limited respectively. The equity investment by Rockpool with these further SPVs will be achieved via a share issue under the Enterprise Investment Scheme on the same terms as Attune Energy 1 Limited, an SPV established to fund the Company’s first 20MW of flexible power generation. The terms are outlined in the Company’s Admission Document.
The total capital expenditure, working capital, fees and contingency for PPG’s third and fourth 20MW of flexible power generation is expected to be £5.4 million per project. Following the completion of the equity investment by Rockpool, the balance is intended to be covered by an asset finance facility. Plutus Energy Limited will own 45% of the SPV and will have a right to 45% of the value of the SPV. As an associated company, PPG will be able to consolidate 45% of its share of the profit and loss account of the SPV.
Phil Stephens, CEO of PPG said, “We are delighted that Rockpool has entered into proposals for a total of £13.6 million of equity investment into the Company’s SPVs. Our strategy is focussed on achieving 200MW within 3 years, and considering that these proposals amount to 40% of our total equity funding requirements for this target, we are well positioned to meet this target on, if not ahead of, schedule.”
