5 Apr 2019 07:00
This announcement contains inside information
5 April 2019
redT energy plc
("redT" or the "Company")
Completion of US Business Activities Divestment
Further to the announcement made on 14 March 2019, redT energy plc (AIM:RED), the energy storage solutions company, is pleased to announce that it has now completed the divestment of its legacy Camco business with the sale of its wholly owned subsidiary Camco International Group Inc. ('CIG'). This business provides project development and asset management services to biogas projects in the USA. Over the last three financial years this business has contributed £0.2 million per annum to group Results from Operating Activities.
CIG has been sold to an entity controlled by Jim Wiest, Managing Director of CIG. Cash receipts from the sale consist of a distribution of US$1.0 million to redT funded by a loan into CIG from a third party plus $0.5m of further consideration payable in two equal instalments, the first due 30 April 2019 and the balance due 31 July 2019. It was agreed that working capital balances, including cash of $0.5m, would remain in CIG as part of the sale resulting in a net cash benefit to redT as a result of the transaction of $1m. This will be used to fund the redT business during the Strategic Review announced on 14 March 2019. At the time of sale, CIG had net liabilities of US$0.3 million, including the US$1.0 million loan liability.
The divestment of US business activities constitutes a related party transaction under the AIM Rules. The Directors consider, having consulted with Investec, acting in its capacity as the Company's Nominated Adviser, that the terms of the sale are fair and reasonable insofar as the Company's shareholders are concerned.
Enquiries:
redT energy plc | +44 (0)20 7121 6111 |
Neil O'Brien, Executive Chairman | |
Joe Worthington, Investor & Media Relations | |
Investec Bank plc (Nominated Adviser and Broker) | +44 (0)20 7597 5970 |
Jeremy Ellis / Chris Sim / Alexander Ruffman
| |
VSA Capital (Joint Broker) Andrew Monk / Andrew Raca / Simon Barton | +44 (0)20 3005 5000
|
Celicourt Communications (Financial PR) Mark Antelme / Jimmy Lea / Ollie Mills | +44 (0)20 7520 9266 |
Notes to Editors
About redT energy
redT energy plc are experts in energy storage, specialising in the design, manufacture, installation and operation of energy storage infrastructure which creates revenue alongside reliable, low-cost renewable generation for businesses, industry and electricity distribution networks. Using patented vanadium redox flow technology to store energy in liquid, redT's own energy storage machines can be run continually with no degradation: charging and discharging for over 25 years, matching the lifespan of renewable assets in on-grid, off-grid and weak-grid settings.
redT's energy storage solutions, developed over the past 15 years, address today's changing energy market by providing a flexible platform for time shifting surplus renewable power, securing electricity supplies and earning revenue through grid services. The company has customers in the UK, Europe, sub-Saharan Africa, Australia and Asia Pacific. redT energy plc is listed on the London Stock Exchange (AIM:RED) and has experts located in the UK, Europe, Australia, Africa, Asia and the USA. For more information, visit www.redTenergy.com
For sales, press or investor enquiries, please contact the redT team on +44 (0)207 061 6233.