Kibo/mast21 Sep 2022 08:59
RNS Number : 1174A
Kibo Energy PLC
21 September 2022
A picture containing text, clipart Description automatically generatedKibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 21 September 2022
Kibo Energy PLC ('Kibo' or the 'Company')
Kibo Bolsters its Renewable Energy Strategy with Acquisition of Advanced UK Waste to Energy Project
Kibo Energy PLC (AIM: KIBO; AltX: KBO) ('Kibo' or the 'Company'), the renewable energy focused development company, is pleased to announce that it has signed a definitive Share Purchase Agreement (the 'SPA') to acquire a 100% interest in a waste reception, Anaerobic Digestor ("AD") and CHP power plant ('Southport' or 'the Project') at Merseyside, United Kingdom.
The acquisition of Southport, a 12MW waste-to-energy project in the UK, is in line with the Company's refocused strategy to acquire and develop an energy portfolio centered around sustainable renewable / clean energy solutions and opportunities, as detailed in a Company RNS dated 19 April 2021.
Highlights of the Southport SPA:
• Kibo Energy will acquire 100% of the total issued share capital of Shankley Biogas Ltd ("Shankley"), which is developing the Project and who will also be responsible for the construction and operation of the Project.
• Southport, an AD and power plant at Mersey Side in the UK, comprises an 80,000 tonne waste-reception center, with AD technology that is set to produce 5.5 million m3 of bio-methane per annum with a 10 MW installed Combined Heat and Power ("CHP") plant plus planned 2MW battery storage.
• Project rights include all technology license agreements, equipment supply and maintenance agreements, and related project documentation.
• The transaction consideration is £600,000, payable as £350,000 in ordinary shares of Kibo at an issue price equal to the 20-day volume-weighted average price ('VWAP') of the 20 days preceding the closing date of the acquisition, and £250,000 in cash to be paid as £50,000 within 14 days of the closing date, an amount of £75,000 on the earlier of the date on which the new board of directors of Shankley shall have approved a final financial model and project investor memorandum for debt and project funding following the closing date, or on financial close, and £125,000 on reaching financial close.
• Shankley Biogas Ltd has negotiated a Power Purchase Agreement ('PPA') and a Gas Purchase Agreement ('GPA') term sheet on favourable terms with a blue-chip buyer.
• The Project has full planning permission as well as grid and gas connection points already in place.
• Based on independent financial estimates, prepared by reputable and appropriately accredited consulting firm, the projected valuation metrics for the Project are summar
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