Roll-in of further economic interests in REDT

RNS Number : 6044B

Camco Clean Energy PLC

08 October 2015

 

RNS

8 October 2015

Camco Clean Energy plc

Roll-in of further economic interests in REDT

The board of Camco Clean Energy plc ("Camco" or the "Company") is pleased to announce that it has reached an agreement to acquire (the "Transaction") an additional 5.2 per cent. economic interest in Renewable Energy Dynamics Holdings Limited ("REDH"), the holding company for its REDT Energy Storage business ("REDT"). The consideration is the issue of, in aggregate, 17,027,334 new Camco ordinary shares of €0.01 each (the "Consideration Shares").

Following completion of the Transaction, Camco will have an economic interest in 95.2% of REDH and will continue to have effective voting control of 100% of the shares in REDH, which it achieved through the roll-in announced on 30 September 2015. In due course, Camco intends to seek to acquire up to the remaining 4.8% economic interest in REDH which would be subject to a separate transaction.

The Transaction is being effected through the acquisition of a 15.33% minority stake in an intermediate holding company of REDH, Re-Fuel Technology Limited, of which the Company already has an interest of 71.28%. Post completion of the Transaction, the Company will have an interest in Re-Fuel Technology Limited of 86.61%.

As part of the Transaction, each of the vendors under the Transaction has undertaken to the Company that, save with prior written consent of the board of the Company, they will not dispose of any of their respective Consideration Shares for a period of 12 months.

Application has been made for 17,027,334 Consideration Shares to be admitted to trading on AIM. Admission is expected to take place on 13 October 2015.

Following completion of the Transaction, the Company will have 395,844,387 ordinary shares of €0.01 each in issue. This figure of 395,844,387 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Certain of the vendors under the Transaction, being Sir John Samuel, Arthur Simmonds and Peter Ridley, are currently directors of Re-Fuel Technology Limited and as such are regarded under the AIM Rules as related parties. These vendors will receive consideration of, in aggregate, 16,185,682 Consideration Shares ("Vendor Director Consideration Shares") which constitutes a related party transaction pursuant to Rule 13 of the AIM rules. The directors of the Company consider, having consulted with finnCap in its capacity as the Company's nominated adviser, that the terms of the issue of the Vendor Director Consideration Shares are fair and reasonable insofar as shareholders of the Company are concerned.

Enquiries:

Camco Clean Energy	[phone]
Scott McGregor, Chief Executive Officer
Jonathan Marren, Chief Financial Officer
finnCap Ltd (Nominated Adviser and Broker)	[phone]
Julian Blunt (Corporate Finance)
Tony Quirke (Corporate Broking)
Newgate (Financial PR) Tim Thompson Helena Bogle Ed Treadwell	[phone]

About Camco Clean Energy

Camco Clean Energy plc (AIM: CCE) is a clean energy development company which combines technical and commercial expertise to finance, develop and operate renewable energy projects and storage technology.

With 25 years' experience and an outstanding track record throughout Asia, North America, Africa and Europe, Camco works with local developers, governments, development banks, and private investors to implement clean energy projects, policies, and technologies and to reduce emissions.

In the last year, Camco has brought an advanced energy storage technology to market (REDT energy), secured an investment advisory fund mandate for African renewables, and developed utility scale biogas plants in the US.

About REDT

REDT has developed a new and proprietary energy storage technology which enables the efficient and sustainable storage of electrical energy in liquid form.  The multi-valent properties of the Vanadium Redox electrolyte are used to provide a storage medium of virtually unlimited life with a system able to last more than 10,000 deep charge/discharge cycles. Combined with its very low maintenance requirements, REDT systems are able to deliver some of the lowest Total Cost of Ownership (TCO) results in the industry. Long discharge durations are achieved by the simple addition of extra electrolyte capacity at a relatively low marginal cost.

Until now it has not been possible to directly compare variable RE generation with firm diesel or fossil fuel generation. PV + Storage is now reaching 'grid parity' in many countries, a paradigm shift in energy production, which will ultimately enable the complete displacement of conventional fossil fuel power with renewable generation. The REDT system has applications in remote power, smart grids, power quality, and all aspects of renewable energy management.

 

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