Mast
Energy Developments PLC
(Incorporated in England and
Wales)
(Registration Number:
12886458)
LEI :213800HFVHGJ9YGO9F71
Share code on the LSE:
MAST
ISIN: GB00BMBSCV12
('MED' or 'the Company')
Dated: 22 November 2024
Mast Energy Developments PLC
('MED' or 'the Company')
Pyebridge Record High
September Revenues Increase, Sale of Development
Project,
New Project Finance Framework
Agreement, Board Changes, and Appointment of Corporate
Broker
Mast Energy Developments PLC is
pleased to announce an update regarding Pyebridge, the sale of one
of its development projects, the execution of a new project finance
framework agreement, board changes, and the appointment of a
corporate broker. The highlights and further details of each of
these matters are outlined below.
Key
Highlights:
Pyebridge Revenues and 2nd Genset Refurb Progress
Update
·
Record high revenue for September 2024 increased
by 10% to c. £95,000 (up from
c. £86k previously reported) following receipt of
Embedded Benefits;
·
Preliminary revenue for October 2024 of
c. £65,000 before receipt of Embedded
Benefits;
·
Average revenue per MW per month for July to
October period increases to c. £23k;
·
Pyebridge 2nd (of three) 2.7MW genset's
overhaul process is progressing well and according to plan, with
the refurbished long-block having been shipped and arrived from the
supplier in Austria;
·
The 2nd genset overhaul process has now
entered its final phase, with commissioning of the newly
refurbished genset on site expected by around the end of November
and commercial production starting shortly thereafter;
·
Following the completion of the 2nd
2.7MW genset, Pyebridge will have 2x 2.7MW (i.e. 5.4MW) in optimal
commercial production and generating income, effectively doubling
the site's trading revenue generation capacity;
·
Expected that overhaul of 3rd and final
2.7MW genset will officially commence soon, and once completed the
site will have its full 8.1 MW total generation capacity in optimal
production;
·
Extended period of low winds send UK power prices
to 2-year high, with the intraday price for electricity surging to
c. £329 per MWh on 5 November 2024; and
·
In addition to the benefit of higher electricity
sales prices meaning higher revenues, the low winds also
substantially increase the demand for flexible generation, and
resultingly the revenue and profitability of Pyebridge.
Sale of Development Project
·
Completed the sale of one of MED's development
projects, being Rochdale a 4.4MW development site which has not
been constructed yet;
·
A sale and purchase agreement was signed, and the
entire issued share capital of the Rochdale's project SPV, Rochdale
Power Ltd was sold to Balance Power Projects Ltd for a total
purchase consideration of £258,170, which is at a premium to the
cost that MED paid for the site;
·
The sale of one of MED's development projects is
in line with the Company's refocused strategy to acquire existing
constructed sites at a lower total investment cost and shorter time
to production and income generation;
·
The disposal also results in the saving of ongoing
costs associated to the Rochdale project and its SPV;
and
·
The disposal proceeds will extend MED's cashflow
runway and enable the Company to fast-track its refocused strategy,
and will be used for M&A transactions and general working
capital purposes.
Project Finance Framework Agreement
·
Entered into a framework agreement with RiverFort
Global Capital Ltd ("RGC") for RGC to arrange project finance
funding for additional site acquisitions and developments (the
"Framework Agreement"); and
·
Under the Framework Agreement RGC will support MED
to procure and secure project finance funding in order to grow its
portfolio of MWs in production to 300+ MW's, and further provide
MED with certain financial advisory support services.
Board Changes
·
Mr. Louis Coetzee and Mr. Dominic Traynor have
stepped down and retired as directors from the board;
and
·
Mr. Paul Venter, the founder and existing
non-executive board director of MED will take over as interim
non-executive chairman until such time that a suitable new chairman
has been appointed in due course.
Corporate Broker
·
Fortified Securities has been appointed as
corporate broker to the Company with immediate effect.
Pieter Krügel, MED CEO, commented: "We are pleased with the ongoing positive performance and
financial results of Pyebridge since the start of the site's
gensets overhaul process announced earlier this year.
Pyebridge's
increasing positive performance is a testament to the critical need
for flexible power generation in the UK. The progress at
Pyebridge is going well and according to plan, with the overhaul of
the 2nd of the site's three 2.7MW gensets entering its
final phase before coming onstream to further increase the income
and profitability of Pyebridge. Moreover, the recent surge in
electricity prices to a 2-year high as well as increased demand for
flexible generation, due to low winds severely impacting Britain's
renewable generation capabilities, are a welcome added benefit to
the revenue and profitability of Pyebridge.
"We are pleased to have completed the sale of one of MED's
development projects. The sale is in line with MED's refocused
strategy to acquire existing sites that have already been
constructed, at a lower total investment cost and shorter timeline
to income generation compared to a development project. The sale
not only allows the Company to fast-track the implementation of the
refocused strategy, but also provides non-dilutive funding to the
Company and extending its cashflow runway, mitigating the need for
a dilutive fundraise for the foreseeable future. Additionally, we
are focusing on reducing ongoing costs, and among other measures
implemented, the savings from Rochdale's ongoing costs as well as
the reduced Company board fees are extending our cashflow
runway.
"We are further delighted to have entered into the Framework
Agreement with RGC. This follows RiverFort's initial investment
into Pyebridge earlier this year, and the positive outcome thereof
since then, and further solidifies the relationship between MED and
RiverFort. RiverFort has been a key pillar to MED and the Framework
Agreement is a significant step to support and fast track
MED's strategy to grow its portfolio of MWs in production to 300+
MWs. The Company appreciates RiverFort's ongoing and growing
support.
"On behalf of the Company and board, I would like to thank Mr.
Coetzee and Mr. Traynor for their service to the board, and wish
them all the best with their future endeavours."
Stay up to date with MED's latest
news and updates by joining our emailing list and social media
channels, as follows:
MED emailing list -
https://med.energy/email-alerts/
MED LinkedIn page -
https://uk.linkedin.com/company/mast-energy-developments-plc
MED X (formerly Twitter) handle -
@mastplc
Further details of Key Highlights:
Disposal of Development Project
MED has signed a share purchase
agreement and completed the sale of the entire issued share capital
of the Rochdale's project SPV, Rochdale Power Ltd to Balance Power
Projects Ltd for a total consideration paid to MED of
£258,170.
The disposal of one of MED's
development sites is in line with the Company's refocused strategy
to acquire existing constructed sites at a lower total investment
cost and time to production and income generation. The disposal
also results in the saving of ongoing costs associated to the
Rochdale project and its SPV. The disposal proceeds will extend
MED's cashflow runway and allow the Company to fast-track its
refocused strategy, and will be used for M&A transactions and
general working capital purposes.
Project Finance Framework Agreement
MED has entered into a framework
agreement to engage RGC to arrange project finance funding for new
site developments. RGC has a proven track record of venture
debt capital fundraising.
MED has agreed to grant RGC a ROFR
for a minimum participation of 50% of any project finance capital
funding requirement of each additional site SPV that is acquired or
established by MED. To the extent that MED funds the same value as
RGC's nominated investors, the relevant SPV will share the economic
rights of each SPV on a 50/50 basis. The minimum economic interest
(or free carry) of MED in each new site SPV will be no less than
20%, with no capital investment obligation from MED (i.e. the
interest is retained in consideration of MED's operational
management of the SPV). This framework agreement enables MED to
underwrite no less than 50% of the capex of a SPV as a long-term
debt at SPV level, providing enhanced surety of access to capital
as the portfolio is grown to the targeted 300+ MW.
Further, RGC is working with MED to
restructure the existing debt secured on the Pyebridge Site to
reprofile as a non-interest bearing long-term facility with
repayments linked solely to realised net revenue. Tax advice is
currently being sought to ensure capital preservation is best
realized for MED's group and the board expect to update the market
in due course on the execution of such a debt reprofile.
ENDS
This announcement contains inside information for the purposes
of the UK version of the Market Abuse Regulation (EU No. 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('UK MAR'). Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
For further information please
visit www.med.energy or contact:
