Kedco PLC Working Capital Facility and Update (0403M)
August 20 2013 - 2:00AM
UK Regulatory
TIDMKED
RNS Number : 0403M
Kedco PLC
20 August 2013
AIM:KED 20th August 2013
Kedco plc
("Kedco" or the "Company")
Working Capital Facility, Pluckanes Wind Farm and Newry Biomass
Update
The Company announces that it has entered into a rolling,
monthly working capital facility (the "Facility") with Farmer
Business Developments plc ("Farmers"), who hold 299,696,768
Ordinary Shares, representing 26.79 per cent of the issued share
capital of the Company.
The Facility, which has no maturity date and is repayable on
demand, is unsecured and any drawdowns will accrue interest at a
rate of 5 per cent. per annum. Funds drawn down under the Facility
will be used by the Company to meet ongoing working capital
requirements. The Facility is capped at EUR500,000 but may be
increased by agreement between the parties.
Farmers is a substantial shareholder of the Company and as such
the entry into the Facility is a related party transaction for the
purposes of Rule 13 of the AIM Rules. The Independent Directors
(being the directors other than Dermot O'Connell), having consulted
with Shore Capital and Corporate Limited (the Company's nominated
adviser), consider that the terms of the Facility are fair and
reasonable insofar as Shareholders of Kedco are concerned.
The Company announces that its wholly owned subsidiary Reforce
Energy Limited has raised EUR215,000 in loan notes from private
investors. The proceeds from the loan notes will be used to fund
development costs and equity related to single wind turbine
projects.
In this regard the Company is also pleased to announce that
financial close has been reached with Allied Irish Bank plc for the
funding of the 800kw Pluckanes Windfarm project. All conditions
precedent have been satisfied to release the first drawdown of
funds.
Construction work on the site is well advanced with the majority
of civil works now completed and delivery of the wind turbine and
ancillary equipment due in the next two weeks. The project remains
on track to export electricity to the national grid by the end of
September 2013.
The company also announces that Ulster Bank Ireland Limited have
made available working capital and other facilities totalling
GBP750,000 to be used to fund the working capital needs and the
continued build out of the Newry Biomass Limited biomass project
located in Newry, Northern Ireland.
Gerry Madden, CEO commented: "We are pleased to have secured
additional support from new and existing investors. The Company
will continue to focus on securing additional funding to enable it
to deliver on its planned development programme and overall
strategy. We are delighted with progress on the Pluckanes Wind Farm
project, it remains on time and on budget and it will be the
Company's first wind turbine in operation once energised. It is our
intention to bring a number of our other single wind turbine
projects with planning permission into construction over the next 6
to 12 months and work continues to achieve this target. We also
continue to make good progress on the Enfield Biomass project and
look forward to updating Shareholders in the near future."
- Ends -
For further information:
+353 (0)21 483
Kedco plc 9104
Gerry Madden, CEO
+44 (0)20 7408
Shore Capital - Nomad & Broker 4090
Pascal Keane / Anita Ghanekar
+44 (0)20 7398
Abchurch Communications - Financial PR 7700
Janine Brewis / Joanne Shears / Shabnam
Bashir
About Kedco plc
Kedco Group is a renewable energy portfolio developer and
operator whose business strategy is to identify, develop, build,
own and operate renewable energy electricity and heat generation
plants in the UK and Ireland.
The Group possesses significant knowledge of renewable energy
markets, clean technologies, fuel sources, project development,
project finance and project delivery.
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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