RedT Energy PLC Completion of US Business Activities Divestment (2144V)
April 05 2019 - 2:00AM
UK Regulatory
TIDMRED
RNS Number : 2144V
RedT Energy PLC
05 April 2019
This announcement contains inside information
5 April 2019
redT energy plc
("redT" or the "Company")
Completion of US Business Activities Divestment
Further to the announcement made on 14 March 2019, redT energy
plc (AIM:RED), the energy storage solutions company, is pleased to
announce that it has now completed the divestment of its legacy
Camco business with the sale of its wholly owned subsidiary Camco
International Group Inc. ('CIG'). This business provides project
development and asset management services to biogas projects in the
USA. Over the last three financial years this business has
contributed GBP0.2 million per annum to group Results from
Operating Activities.
CIG has been sold to an entity controlled by Jim Wiest, Managing
Director of CIG. Cash receipts from the sale consist of a
distribution of US$1.0 million to redT funded by a loan into CIG
from a third party plus $0.5m of further consideration payable in
two equal instalments, the first due 30 April 2019 and the balance
due 31 July 2019. It was agreed that working capital balances,
including cash of $0.5m, would remain in CIG as part of the sale
resulting in a net cash benefit to redT as a result of the
transaction of $1m. This will be used to fund the redT business
during the Strategic Review announced on 14 March 2019. At the time
of sale, CIG had net liabilities of US$0.3 million, including the
US$1.0 million loan liability.
The divestment of US business activities constitutes a related
party transaction under the AIM Rules. The Directors consider,
having consulted with Investec, acting in its capacity as the
Company's Nominated Adviser, that the terms of the sale are fair
and reasonable insofar as the Company's shareholders are
concerned.
Enquiries:
redT energy plc +44 (0)20 7121 6111
Neil O'Brien, Executive Chairman
Joe Worthington, Investor & Media
Relations
Investec Bank plc (Nominated Adviser
and Broker) +44 (0)20 7597 5970
Jeremy Ellis / Chris Sim / Alexander
Ruffman
VSA Capital (Joint Broker)
Andrew Monk / Andrew Raca / Simon
Barton +44 (0)20 3005 5000
Celicourt Communications (Financial
PR)
Mark Antelme / Jimmy Lea / Ollie
Mills +44 (0)20 7520 9266
Notes to Editors
About redT energy
redT energy plc are experts in energy storage, specialising in
the design, manufacture, installation and operation of energy
storage infrastructure which creates revenue alongside reliable,
low-cost renewable generation for businesses, industry and
electricity distribution networks. Using patented vanadium redox
flow technology to store energy in liquid, redT's own energy
storage machines can be run continually with no degradation:
charging and discharging for over 25 years, matching the lifespan
of renewable assets in on-grid, off-grid and weak-grid
settings.
redT's energy storage solutions, developed over the past 15
years, address today's changing energy market by providing a
flexible platform for time shifting surplus renewable power,
securing electricity supplies and earning revenue through grid
services. The company has customers in the UK, Europe, sub-Saharan
Africa, Australia and Asia Pacific. redT energy plc is listed on
the London Stock Exchange (AIM:RED) and has experts located in the
UK, Europe, Australia, Africa, Asia and the USA. For more
information, visit www.redTenergy.com
For sales, press or investor enquiries, please contact the redT
team on +44 (0)207 061 6233.
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END
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