Last checked at 14 Sep 2010 13:06
14th September 2010
This is a correction to RNS announcement 6413S. The changes include:
- The removal of brackets around the 20th September 2010
- The placing of shares in aggregate represents just under 2 per cent. of the enlarged share capital of Rurelec plc (NOT 0.2 per cent. as previously stated)
All other details in the release remain the same
Rurelec PLC
("Rurelec" or the "Company")
Placing of 4.25 Million New Ordinary Shares
at 10 pence to raise £425,000 to accelerate
preparations for international arbitration
Rurelec PLC (AIM:RUR), the power plant developer and owner-operator of power generation assets in Latin America, announces that it has today placed a total of 4.25 million new ordinary shares of 2 pence each ("the Placing Shares") at a price of 10 pence per share to raise £425,000 before expenses ("the Placing").
Religare Capital Markets plc, lead broker to Rurelec, acted in the Placing, which is conditional upon admission of the Placing Shares to trading on AIM.
The net proceeds from the Placing will be used to accelerate preparations to initiate the international arbitration process as Rurelec pursues its compensation claim against the Government of Bolivia for the nationalisation ("Nationalisation") of the controlling stake in Empresa Guaracachi SA ("Guaracachi") held by its US subsidiary Guaracachi America, Inc. (the "Nationalisation"). The Nationalisation was a part of the 2010 May Day programme in which three privately-owned power generating companies, a regional distribution company and a national electricity transmission company were brought into state ownership by means of a Supreme Decree issued by Bolivia's President Evo Morales on 1st May (the "Decree"). The net proceeds from the Placing will be used to help fund costs associated with initiating the international arbitration process to ensure that the international right to receive fair market value of its investment is respected.
The Placing
The Placing Shares have been allotted subject only to admission to trading on AIM ("Admission"). Admission is expected to take place on 20th September, 2010. The Placing Shares will in aggregate represent just under 2 per cent. of the enlarged share capital of Rurelec. The total enlarged issued share capital of Rurelec following Admission will be 220,671,505 Ordinary Shares (the "Enlarged Issued Share Capital"). The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.
The Placing Shares have been placed with existing institutional shareholders.
Working Capital
The directors expect that EdS will be in a position to refinance its loan with Standard Bank PLC within the next two months, following initiation of its Resolution 220 contract. The refinancing will allow EdS to start repaying loans and interest on funds lent by Rurelec.
The net proceeds of the fundraising will not provide the Company with sufficient working capital to satisfy its total medium and long term requirements, without the anticipated refinancing of the Standard Bank loan or the extension of current facilities due to expire during the current financial year. An announcement will be made at the appropriate time if there is any further change in the financial condition of the Group.
For further information, please contact:
| Company: |
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| Peter Earl, Managing Director, Rurelec PLC | Tel: +44 (0)20 7793 5610 |
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| Nominated Adviser: |
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| Paul Shackleton /Tessa Smith Daniel Stewart & Company PLC |
Tel: +44 (0)20 7776 6550 |
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| Brokers: |
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| Daniel Briggs, Religare Capital Markets PLC | Tel: +44 (0)20 7444 0503 |
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| Financial PR: |
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| Ana Ribeiro / Tim Blythe Blythe Weigh Communications Ltd |
Tel: +44 (0)20 7138 3206 |