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Exclusive Agreement with Rockpool Investments LLP for Total Non-Asset Finance Investment of £34 million into its SPVs for 200MW of Flexible Power Generation Sites
Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, is pleased to announce that it has signed an exclusive agreement for Enterprise Investment Scheme funding with Rockpool Investments LLP whereby Rockpool proposes to fund via ten Special Purpose Vehicles of 20MW each for the construction of a total of 200MW of flexible energy generation in the UK, a total of £34 million of equity, including the £13.6 million already announced.
Following the completion of this exclusive arrangement, the non-asset finance component required to meet the Company’s initial target to develop 200MW of flexible energy generation in the UK over three years, will be fully funded with no equity dilution to PPG. This exclusive agreement represents a transformational milestone for PPG as it, upon receipt of funds, would complete the funding requirement of its three-year target of 200MW of generation capacity.
Plutus Energy Limited will own 45% of each SPV and will have a right to 45% of the value of each SPV. As an associated company, PPG will be able to consolidate 45% of its share of the profit and loss account of the SPV. The exclusive period under the agreement runs until 30 June 2016 with a break clause if, inter alia, Rockpool fails to introduce EIS funding for five SPV’s before 30 June 2015.
Phil Stephens, CEO of PPG said, “This exclusive agreement dramatically de-risks our path towards delivering over 200MW of flexible power generation sites in the south of England and demonstrates a distinct funding route in respect of the non-asset finance component required to achieve our strategy on schedule.
“We are at a highly exciting time in PPG’s development and are delighted to have received this significant support for our topical business model. Advancing our funding and planning strategies is our main priority and with this in mind, we anticipate providing regular updates with regards to asset finance and planning going forward.”
