GSH.L Regulatory News (GSH)

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23 August 2017

Green & Smart Holdings plc

("Green & Smart" or "the Company")

Project and Financing Update

Green & Smart Holdings plc (AIM: GSH), a renewable energy company generating power from biogas captured through the treatment of palm oil mill effluent ("POME") in Malaysia, is pleased to announce an update on the progress it has made on various projects and regarding its financing arrangements.

Megagreen Energy ("MGE"), an associated company of Green & Smart, has already completed five biogas plants under engineering, procurement, construction and commissioning ("EPCC") contracts with 6MW of total capacity. With Concord Green Energy ("CGE"), another associated company of Green & Smart, the Company has an existing EPCC pipeline of at least another ten biogas plants with contracts for 12.5MW of capacity. Completion of further EPCC contracts is expected in H2 2017.

Green & Smart continues to progress its business model of combining build, own and operate ("BOO") with that of EPCC. Green & Smart has recently completed the commissioning and interconnection works for its second fully-owned biogas power plant, the 2.0MW Malpom plant located in Nibong Tebal, Penang. The Company is awaiting receipt of a certificate of initial operation date ("IOD") and expects to receive the formal certificate of commercial operation date ("COD") during Q3 2017, at which point Green & Smart will begin to sell power to TNB at the full tariff rate.

Green & Smart has also established a pipeline of projects that it will build, own and operate and work is scheduled to commence shortly on the Dupont (1.0MW) and Veetar (2.0MW) plants. Green & Smart has also commenced work under its EPCC contract with CGE on four greenfield biogas-based power generation plants to be constructed within the sites of four specified palm oil mills owned by Felda Palm Industries Sdn Bhd. Green & Smart expects to complete the CGE plants by year-end 2017 with the process of applying for IOD and COD on these plants to follow. The Company remains in discussions with CGE in relation to its pipeline of brownfield sites and will provide further updates on these as and when appropriate.

Green & Smart has a significant market share of contracts awarded to biogas-to-power companies in Malaysia. As the Company stated in its half yearly results for the six months ended 31 March 2017, the maintenance of this leading position is very much dependent on the availability of adequate funding. As Green & Smart continues to pursue projects and opportunities which the Directors believe will deliver value for the Company's shareholders and enable Green & Smart to maintain its market position, the Company continues to focus on securing long-term financing facilities from local finance providers who are becoming increasingly familiar with both Green & Smart and also the generation of biogas from POME to generate electricity.

In line with the Company's objective to deliver value for its shareholders, Green & Smart is focusing on EPCC margins and project returns in order to facilitate a maiden dividend to investors for the financial year ending 30 September 2018 in conjunction with the implementation of a progressive dividend policy.

Mr. Saravanan Rasaratnam, Chief Executive Officer of Green & Smart, said:

"We are pleased with our progress in developing our pipeline of wholly-owned and associated projects. We anticipate the completion of more EPCC contracts by year-end and our existing fully-owned biogas power plants will continue to provide power to the grid while we advance the construction of the new ones. Green & Smart remains one of the few fully-integrated providers and operators of biogas plants in Malaysia at a time when government regulation requires all palm oil mill operators to install biogas plants to capture greenhouse gases in the form of methane that would otherwise be released into the atmosphere. As a result, the Board continues to look to the future with confidence."

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Forward-looking statements

This announcement contains statements about Green & Smart that are or may be deemed to be "forward-looking statements".

All statements, other than statements of historical facts, included in this announcement may be forward-looking statements. Without limitation, any statements preceded or followed by, or that include, the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "should", "anticipates", "estimates", "projects", "would", "could", "continue" or words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements include, without limitation, statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects and (ii) business and management strategies and the expansion and growth of the operations of Green & Smart.

These forward-looking statements are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of any such person, or industry results, to be materially different from any results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of such persons and the environment in which each will operate in the future. Investors should not place undue reliance on such forward-looking statements and, save as is required by law or regulation (including to meet the requirements of the AIM Rules, the Prospectus Rules and/or the FSMA), the Company does not undertake any obligation to update publicly or revise any forward-looking statements (including to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based). All subsequent oral or written forward-looking statements attributed to the Company or any persons acting on their behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements contained in this announcement are based on information available to the Directors of the Company at the date of this announcement, unless some other time is specified in relation to them, and the posting or receipt of this announcement shall not give rise to any implication that there has been no change in the facts set forth herein since such date.