Kedco PLC VCT funding term sheet for Newry Plant (7708Q)
November 09 2012 - 6:35AM
UK Regulatory
TIDMKED
RNS Number : 7708Q
Kedco PLC
09 November 2012
Press release 9 November 2012
Kedco plc
VCT funding term sheet for Newry Plant
Kedco plc (AIM:KED) ("Kedco" or the "Company"), the renewable
energy group focusing on the production of clean energy in the UK
and Ireland, is pleased to announce that Newry Biomass Limited
("NBL"), the joint venture entity which operates the Company's
Renewable Energy Electricity and Heat Generating plant in Newry,
Northern Ireland, has agreed non-binding indicative terms in
respect of a Venture Capital Trust ("VCT") investment into NBL (the
"Term Sheet").
Pursuant to the Term Sheet, certain VCTs (the "Lenders") have
agreed to make available a term loan of GBP1.5 million to NBL (the
"Loan"). The Loan will be utilised for working capital and in the
construction of the second phase of the 4MW biomass gasification
project, which recently announced that it had commenced to export
electricity to the grid.
The Loan is subject to the satisfaction of certain conditions,
including due diligence and agreement of final contract terms. The
Company will make further announcements in respect of the funding
in due course.
Reforce
On 18 September 2012, Kedco announced that it had signed a heads
of agreement in respect of the proposed acquisition of Reforce
Energy Limited ("Reforce"). The negotiation of a binding contract
is continuing and the directors of Kedco hope to make an
announcement shortly.
Kedco notes that Reforce announced today that it has completed
the acquisition of Pluckanes Windfarm Limited ("Pluckanes"), which
has developed a fully consented 800kw single wind turbine project
located in Cork, Ireland. The directors of Kedco consider the
acquisition of Pluckanes to be an important milestone in Reforce's
development.
Fundraising
Further to the circular dated 10 September 2012, the directors
of Kedco are continuing with the fundraising and intend to make an
announcement shortly.
Gerry Madden, CEO of Kedco, commented: "The transition from
developer to producer in Newry is a significant milestone for Kedco
and we welcome the support of the Lenders in funding this exciting
project. Having attracted funding support from both a major bank
and VCTs, we are confident that we are pursuing the right business
model for commercialising UK Renewable Energy projects that can
provide strong visibility on earnings.
With the purchase of the Pluckanes project, Reforce has added a
construction ready asset to its portfolio, which is targeted to
become operational during 2013. Assuming the completion of the
acquisition of Reforce this will increase Kedco's operational
capacity by 40 per cent. once the project is commissioned next
year. We look forward to providing our shareholders with further
updates in due course."
- Ends -
Enquiries:
+353 (0)21 483
Kedco plc 9104
Gerry Madden, CEO and Finance Director
+44 (0)20 7936
Deloitte Corporate Finance - Nomad 3000
David Smith / Byron Griffin
+44 (0)20 7638
SVS Securities plc - Broker 5600
Ian Callaway / Alex Mattey
Abchurch Communications +44 (0)20 7398
Ashleigh Lezard / Joanne Shears 7709
Further information on Kedco plc
Kedco plc's business strategy is to identify, develop, build,
own and operate renewable energy electricity and heat generation
plants in the UK and Ireland. These plants will contribute to the
need for sustainable energy from renewable sources.
The Company possesses significant knowledge of renewable energy
markets, clean technologies, biomass and waste fuel sources,
project development, project finance and project delivery.
Kedco has a strong pipeline of additional plants at varying
stages of development, including a site in North London with full
Planning and Environmental Permission for the conversion of 60,000
tonnes of waste timber per annum into up to 12MW of electricity and
heat. The Company is also currently engaged in the planning process
for proposed biomass projects in Rutland, East Anglia and Clay
Cross, Derbyshire.
Kedco was admitted to trading on AIM, a market operated by the
London Stock Exchange, in October 2008 (AIM:KED).
www.kedco.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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