MED Binding JVA Completion Update

Mast Energy Developments PLC

23 October 2023

 

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

('MED' or 'the Company')

Dated: 23 October 2023

Mast Energy Developments PLC ('MED' or 'the Company')

MED Binding Joint Venture Agreement Completion Update

Mast Energy Developments PLC, the UK-based multi-asset owner, developer and operator in the rapidly growing flexible power market, announces that further to its previous announcements dated 12 July 2023, 4 August 2023, 1 September 2023, and 22 September 2023 respectively, it has today signed a replacement first definitive and binding Joint Venture Agreement ('JVA') with Proventure Holdings (UK) Ltd which is part of the Proventure Group ('Proventure'), following a rearrangement of the investor consortium participation as set out in our announcement of 1 September 2023. Proventure was founded by Mr. Kona and is an Indian based multi-national group specialising in renewable energy investments globally. The terms of the replacement JVA are the same in all material aspects as that of the previous JVA as set out in our announcement of 12 July 2023. Further, under the terms of the JVA, Proventure is required to make an initial interim payment of £2,000,000 (the "Interim Payment") to the Joint Venture SPV (the "JV"). The Interim Payment must be received by latest 10 November 2023, and the consortium's proof of funds has already been provided by Proventure. As a result, MED has further extended the completion long-stop date for the JVA. The revised completion date and the payment of the balance of the investment due of c. £3.9m is now expected by no later than 30 November 2023 (except where a later date has been agreed by the Company and Proventure, on that date). The further extension is required to allow Proventure to complete the compulsory statutory process, as previously explained. Upon completion of this process, the remaining balance of the JVA funds due will be promptly transferred into the UK to complete the JVA investment.

The JVA referred to above also commits both parties, as set out in MED's announcement dated 12 July 2023, to promptly finalise terms on a second joint venture. As such, notwithstanding the extension of completion of the first JVA as referred to above, the parties will endeavour to finalise terms for the second JV promptly.

Pieter Krügel, CEO of MED, commented: "We are delighted to have concluded the agreement with the replacement lead-investor, and excited to partner with a well-established and reputable institutional investor such as Proventure. The parties are fully committed to finalise the statutory arrangements required to ensure the successful completion and transfer of funds as quickly as possible. We are confident that we will be able to complete the transaction in accordance with the revised long-stop date."

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:

Pieter Krügel	[e-mail]	Mast Energy Developments PLC	CEO
Jon Belliss	[phone]	Novum Securities	Corporate Broker
Zainab Slemang van Rijmenant	[e-mail]	Lifa Communications	Investor & Media Relations Advisor

 

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