PPG.L Regulatory News (PPG)

Plutus PowerGen plc / Ticker: PPG / Index: AIM

28 May 2015

Plutus PowerGen plc ('PPG' or 'the Company')

Grant of Warrant to Rockpool Investments LLP

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, announces that it has granted a warrant to Rockpool Investments LLP ('Rockpool'), in return for introducing the Company to major customers which have awarded contracts to the Company for the construction and operation of flexible stand-by electricity plants for which it receives a management fee. PPG is alsoentitled to an equity stake of 45% in the capital of each major customer introduced.

The warrant entitles Rockpool to subscribe for 30,075,207 new ordinary shares of 0.1p each in the Company at a price of 1.15p per share for the period from 27 May 2018 to 27 May 2021 ("Final Subscription Date"). The warrant exercise price represents a premium of approximately 48 per cent to the closing mid-market price of the Company's ordinary shares of 0.775p on 26 May 2015.

In the event that a takeover bid made for the entire issued and to be issued share capital of the Company is declared unconditional in all respects prior to the Final Subscription Date, the warrant will become exercisable immediately.

Rockpool and the Company have also entered into an orderly market arrangement whereby Rockpool will only transfer or dispose of ordinary shares of the Company issued to it pursuant to a warrant exercise through the Company's broker for a period of one year following the issue of such shares.

PPG Chairman Charles Tatnall said, "Rockpool's acceptance of this warrant in PPG is a strong testament to its confidence in our business and, importantly, it solidifies our already strong relationship with Rockpool".

Andrew Green, Head of Investment at Rockpool said, '"We are pleased to bring our investee companies in the flexible stand-by power industry together with Plutus PowerGen PLC, a leading operator in the sector ".

**ENDS**

For further information, please visit www.plutuspowergen.com, or contact:

Notes to Editors

Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years and currently has a project pipeline of potential development sites with 500MW of power generation capacity.

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.

About Rockpool

Rockpool Investments is a network investment firm that offers private investors the chance to invest directly in private companies. Since the beginning of 2013 it has helped over 1000 people invest £100 million in 29 businesses. Rockpool invests £2-5 million apiece in UK-managed businesses across a wide range of sectors. Funded companies include the Chicago Rib Shack (a fast-casual restaurant chain), the Airedale Catering Group (fitting kitchens in schools and hospitals), Aegis Data (a data centre operator) and the Kirkleatham Crematorium.

Rockpool combines the best elements from crowdfunding (direct investment by individuals into private companies), private equity (due diligence, negotiating terms, active investor representation) and angel investment networks (investor engagement with their portfolio companies' CEOs). Rockpool was founded by Matt Taylor in 2011. Matt identified a need for individuals to gain access to good private companies, taking advantage of tax relief schemes such as the Enterprise Investment Scheme (EIS), Business Property Relief (BPR) and Business Investment Relief (BIR) - with associated multiple tax benefits, i.e. income tax, CGT, IHT reliefs and investment relief from remittance charges, for all equity investments. Investors can also invest through SIPPS or personal companies.