22 Aug 2014 08:00
22 August 2014
Plutus PowerGen plc
("Plutus PowerGen" or the "Company")
(formerly Plutus Resources plc)
Admission and First Day of Dealings
Further to the announcement made on 5 August 2014, the Company is pleased to announce the readmission of its enlarged issued share capital to trading on AIM following completion of the acquisition of Plutus Energy Limited ("Plutus Energy") and the placing of ordinary shares to raise £0.8 million. The legal name of the Company has been changed to Plutus PowerGen plc with immediate effect. Dealings in the enlarged issued share capital will commence at 8.00 a.m. today with ticker PPG.
The total number of ordinary shares in issue at Admission is 488,313,550, giving the Company a market capitalisation of approximately £2.93 million, based on the placing price of 0.6 pence per share.
Overview:
· Plutus Energy is a company that was established in January 2014 for the purpose of generating power from flexible stand-by power generation farms and generating revenues through the sale of this power to large energy supply companies during periods of peak electricity demand or grid instability.
· Plutus Energy has a management team with expertise in the building and operation of flexible power generation projects, a demonstrable track record of securing EIS funding for the fixed cost element of the construction of diesel generation sites, obtaining planning permission with suitable connectivity to the grid as well as successfully tendering for National Grid contracts for this form of specialised energy sales.
· The Directors believe that the market opportunity arises from the constraints inherent in the National Grid's electricity transmission network where flexible power generation has an increasing role to play particularly as fossil fuel power stations continue to close and it will be many years before new nuclear power stations will be built in the UK.
· Whilst Plutus Energy has yet to generate revenues, the business plan of the Enlarged Group assumes that within 12 months from Admission, and subject to securing the necessary funding and planning permissions, it will have secured contracts for construction, on-going tendering and operations & management of short term operating reserve ("STOR") facilities for individually established special purpose vehicles, which will be part owned by the Enlarged Group. In addition, the Enlarged Group intends to enter into service contracts for the tender and operations of STOR capacity for business to business energy efficiency companies.
· Plutus Energy has entered into a STOR framework agreement with National Grid Electricity Transmission plc and has successfully tendered for a total of 30MW of STOR capacity across two sites (subject to certain terms and conditions). The initial focus of the Enlarged Group following admission will be to establish STOR facilities to supply back-up power to National Grid pursuant to these successful tenders and to pursue other such agreements with UK utility companies.
· The Company has completed the Placing to raise £800,000 (before expenses). Directors, Charles Tatnall, James Longley and Phil Stephens each participated in the Placing. The Directors' shareholdings on Admission are as follows:
Director | No. of Ordinary Shares | Percentage of the issued share capital of the Company |
Charles Tatnall | 55,500,000 | 11.37 |
James Longley | 47,500,000 | 9.73 |
Philip Stephens | 34,166,667 | 7.00 |
Paul Lazarevic | 30,000,000 | 6.14 |
Josephine Dixon | - | - |
The same definitions apply throughout this announcement as are applied in the Admission Document, published on 5 August 2014, which contains further information on the Company and is available for download from the investor section of the Company's website, www.plutuspowergen.com.
Enquiries:
Plutus PowerGen plc
+44 (0) 20 8720 6562
Charles Tatnall
James Longley
SP Angel Corporate Finance LLP
Nomad & Broker
+44 (0) 20 3463 2260
Ewan Leggat
Laura Harrison