Powertree £$m investment27 Mar 2025 07:57
Incase anyone missed it, further details of the Powertree £$m investment were added in the recent RNS after the comments by PK and GW (Powertree CEO):
Further details of Powertree Definitive Investment Agreement:
Under the Investment Agreement, Powertree will invest up to £5,000,000 into the Hindlip SPV, ADV 001 Ltd to cover the full required capex to get the site constructed and into commercial production. The investment will consist of £500,000 by way of a new class of A Ordinary Shares of the SPV and up to £4,500,000 will be by way of secured loan (the "Investor Loan"). The investment in A Ordinary Shares will be for 75% of the fully diluted ordinary equity of the Hindlip SPV. MAST shall retain 25% of the fully diluted ordinary equity of the Hindlip SPV with no further funding obligations.
The previous interim loan of £70,000 which Powertree advanced to the Hindlip SPV during December 2024 will be rolled up into the Investor Loan upon completion.
The Investor Loan will be secured by first ranking fixed and floating charges over all the assets of the SPV, and will bear interest at 10% per annum. In the first two years following investment, interest on the Investor Loan will not be paid, but compound. Following this time the Investor Loan will be amortised, repaying interest and principal, while ensuring the Hindlip SPV has the level of working capital in order to manage its working capital swings (the "Minimum Working Capital Level").
Powertree may appoint three directors to the board of the Hindlip SPV on completion, and MED may appoint two directors to the board.
Completion is subject to the amendment of the Hindlip site's lease plan, to make clear that the tenant has the right to construct and use a temporary compound on the landlord's retained land during such times as the tenant is carrying out of works on the land demised under the lease, which has already been accepted in-principle by the landlord and in the process of being formalized. Further, that title indemnity insurance being available with a reputable insurer at the date of satisfaction of the amendment of the site's lease plan.
A management services agreement will be entered into between Powertree and the the Hindlip SPV by which Powertree will provide the day-to-day operational support to the Hindlip SPV. An optimisation service agreement will be entered into between Powertree and the Hindlip SPV by which Powertree will provide the optimisation services to maximise revenue from the generating assets.
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