TIDMRGM
RNS Number : 2479A
Regency Mines PLC
22 December 2017
Regency Mines Plc
("Regency" or "the Company")
Subsidiary EsTeq Ltd Makes Investment
And Appoints Key Manager
22 December 2017
Further to the announcement of 14 November 2017, Regency Mines
Plc, the natural resource exploration and development company with
interests in nickel/cobalt and hydrocarbons, announces that its
wholly owned subsidiary, ("EsTeq") has agreed terms for an
investment in the battery storage and technology space. In a
separate development, Regency announces that Joseph Jayaraj has
been invited to join the EsTeq board.
Investment Highlights:
o EsTeq to invest GBP200,000 initially in White Car Ltd. ("White
Car")(www.white.car) a company currently operating white Tesla
rental car services out of Heathrow and several UK locations
("Initial Investment")
o Following the Initial Investment, and conditional on White Car
successfully closing a Crowdcube funding of at least GBP650,000,
EsTeq will subscribe a further GBP200,000 in February 2018
o Initial Investment will give EsTeq 3.3% of Whitecar, and
should the full GBP400,000 be subscribed, EsTeq will hold up to
5.8% of White Car
o Regency director Scott Kaintz to join White Car board
EsTeq Board Appointment Highlights:
o Joseph Jayaraj appointed to EsTeq board to focus on strategy
and business development, as well as negotiation and
implementation
o Former Head of Environmental Assets at Macquarie Group and 2IC
of RAB Special Situations Fund
Andrew Bell, Chairman, comments: "Regency has a presence in
nickel and cobalt through its large Mineral Resource at Mambare.
These metals are two of the key electric car battery and battery
storage metals, and we need to increase our understanding of this
driver of the now recovering nickel market. If we are to understand
trends, understand the technology, understand where the value is
being created, and adapt, we have to dive deep into the
technologies and uses of this changing marketplace. EsTeq was
established to enable Regency through a small independently managed
business to engage with the battery development ecosystem in ways
that will directly support our nickel/cobalt operations and
development. In White Car, exceptionally, we have taken a stake in
an already developing business as we saw this as a one-off
investment opportunity into a company with an unusually good window
onto key trends in the EV market and battery material usage, and a
clear value development strategy.
We also now welcome Joseph Jayraj to the EsTeq board. His
experience in negotiation, deal execution, exit realisation, and
company flotation, combined with his knowledge of global investment
opportunities within the enviro-resources sector, extending to
green infrastructure and renewable energy projects, has given him a
set of skills that directly complement and extend Regency's own as
we enter a new age of the battery and storage revolution."
Mark Strachan, Whitecar founder and CEO, comments: "The new
shareholders we expect to gain through Crowdcube will be excellent
Whitecar ambassadors whilst Regency Mines and EsTeq offer us
experience of the UK public markets and significant management
expertise. We welcome EsTeq as an investor and Scott Kaintz to our
board as our business enters a high growth stage."
Further Information on the Transaction
EsTeq will invest in White Car at a subscription price of
GBP34.62 a share. EsTeq will have the option for 10 months provided
it invests the full GBP400,000 to subscribe GBP250,000 for
additional White Car shares at GBP51.93 a share. EsTeq shall also
have the right of first refusal to participate on equal terms in
any new White Car fundings for 14 months.
Down-round protection is provided to EsTeq for a period of one
year, meaning that EsTeq would receive an adjustment to its
shareholding in the event of a White Car funding at a price lower
than GBP34.62 a share.
EsTeq or its nominee will directly hold 20% of any venture
established through White Car's Chinese connections.
The management accounts of White Car as of 31 October 2017,
showed total assets of GBP274,708.85 and net assets of
GBP233,889.96 with GBP90,815.05 of cash. October revenues were
GBP48,303.62 and losses GBP60,672.59.
Whitecar Background
Whitecar has a simple model designed to disrupt the traditional
care hire business which it sees as inefficient and late in
adapting to technology. It provides only 100% electric and zero
emission white Tesla cars, driven to the customer who can drive at
one all-inclusive price, and then drop off at any location at the
end of the hire. With no paperwork or keys, operations will be
powered by wholly owned Whitecar smartphone technology which will
streamline the customer experience.
Whitecar began trading in July 2017 at Heathrow airport and now
has additional outlets at Gatwick, Manchester and Edinburgh
airports. The company also rents out some Teslas belonging to
existing owners, typically wishing to generate revenue whilst they
are out of the UK, to its growing customer base.
Whitecar is currently raising equity capital to scale-up across
major European airports and projects at least 30 directly managed
outlets by 2022. More information can be found at
www.white.car.
Background on New EsTeq Director
Joseph Jayaraj is the former Head of Environmental Assets
(Sydney) and Managing Director of European Special Situations
(London) at Macquarie Group. Joseph studied Law and Commerce at the
University of New South Wales, and after an MBA at INSEAD worked
with Merrill Lynch in London and New York on Mergers and
Acquisitions. As Investment Manager and Manager of Legal and
Corporate he was 2IC of the RAB Special Situations Fund from
2003-2006, before returning to Sydney to found the Asia-Pacific
financial adviser Orb Capital Pty Ltd.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines
Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson020 7374 2212 Broker First Equity Limited
This information is provided by RNS
The company news service from the London Stock Exchange
END
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