Completion of Placing
July 05 2010 - 6:04AM
UK Regulatory
TIDMKED
RNS Number : 8061O
Kedco PLC
05 July 2010
5 July 2010
Kedco plc
("Kedco" or the "Company")
Completion of placing
Kedco, the Irish-based energy group focusing on green-energy production in the
UK and Ireland, is pleased to announce that it has raised EUR3.2 million (GBP2.6
million) from the issue of 3,588,583 zero-coupon, secured loan notes (the "Loan
Notes") (the "Placing").
The Loan Notes, which have a subscription price of GBP0.72, will be issued to a
variety of investors (the "Investors") and will be redeemed at par value (being
GBP1) two years from the date of issue (or earlier on the occurrence of certain
events including a sale of the Company).
Each Loan Note entitles the holder to subscribe for three ordinary shares in the
Company at a subscription price of EUR0.08 per share at any time prior to the
fourth anniversary of issue (the "Investor Warrants").
Pursuant to the Placing, Best Kedco Ltd (a subsidiary of the Company established
for the purposes of the Newry project) will pay a royalty of five per cent. of
the proceeds arising from the sale of energy from the Newry project to the
Investors (the "Investor Royalty"). The royalty payments commence with the
initial generation of 1MW of energy from Newry and conclude following 24 months
of continuous generation of 2MW electricity.
The following Kedco directors have subscribed for Loan Notes pursuant to the
Placing:
+----------+------------+-----------+
| | Number | Number |
| | of Loan | of |
| | Notes | Investor |
| |subscribed | Warrants |
| | | to be |
| | | received |
+----------+------------+-----------+
| | | |
+----------+------------+-----------+
| Eddie | 459,264 |1,377,792 |
| Barrett | | |
+----------+------------+-----------+
| Diarmuid | 96,569 | 289,707 |
| Lynch | | |
+----------+------------+-----------+
Pursuant to a separate warrant instrument and in consideration for its placing
services, Cornhill Asset Management Limited ("Cornhill"), an adviser to Kedco,
will have the right to subscribe for two ordinary shares per Loan Note issued by
the Company at a subscription price of EUR0.08 per share. Additionally, pursuant
to a separate royalty agreement, Best Kedco Ltd will pay a royalty of two per
cent. of the proceeds arising from the sale of energy from the Newry project to
Cornhill for the same period as that of the Investor Royalty.
The proceeds from the Placing will be used by Kedco to develop identified
opportunities (including the project at Newry) and for working capital purposes.
The Company continues to explore further funding opportunities which are likely
to be required to develop other projects.
Donal Buckley, Chief Executive said:
"We are very pleased to announce this successful fundraising. The funds were
raised from a number of private investors and we are very encouraged by the
continued support given to our business and strategy.
"The money will be used to develop and progress previously identified joint
venture opportunities in power generation from waste and for working capital
purposes. We look forward to updating the market as to the progress of future
fundraising."
- Ends -
For additional information please contact:
Kedco plc
+353 (0)21 4670427
Donal Buckley/Gerry Madden
Deloitte Corporate Finance - Nomad +44
(0)20 7936 3000
Jonathan Hinton / David Smith
Cornhill Capital Limited - Corporate Broking +44 (0)20
7337 1210
Stefan Olivier / Christopher Maule
This information is provided by RNS
The company news service from the London Stock Exchange
END
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