Last checked at 17 Dec 2020 09:00
Atlantis puts all the building blocks in place and prepares for an exciting 2021
Following the latest announcement from SIMEC Atlantis Energy ("Atlantis") on the 16th December "Atlantis announces Share Placement Agreement" CEO, Tim Cornelius, looks forward to what promises to be an exciting 2021 for the Company, full of major project milestones and new investment opportunities.
He said:
"Today, we have announced that we have effectively put in place a war chest which will allow us to capitalise on new opportunities next year. Further, this facility is a prudent way of ensuring that we have access to a pool of capital now and are not left second guessing what will happen with equity capital markets post BREXIT in 2021. To be working with a US institutional investor for the first time since our long-standing relationship with Morgan Stanley demonstrates the appetite new investors have for exposure to our flagship projects."
Headline figures on the investment include:
1. The initial £2m is in exchange for shares which will be issued within a 24 month window and come with several protections for Atlantis.
2. Beyond the initial £2m, the line of funding is available for up to £12malthough Atlantis isn't locked into raising any further money,, with the option to defer or cancel the facility with no or minimal cost, and an ability to repay drawn amounts.
3. The line of funding provides dilution protection to Atlantis' existing shareholders, with a floor price.
"This facility can be used to make new investments across our existing portfolio and to take advantage of possible new opportunities we believe may materialise over the next 12 months, creating value for shareholders. We are excited by the progress we have been making over the past few months with our fuel partner, N&P Group, and in particular we are focused on new opportunities to potentially supply fuel not only to Uskmouth, but to third party customers as well. We are assessing a number of greenfield development sites across the country and look forward to continuing to update the market as we achieve further development and commercial milestones.
As per our recent update to the market, our team continues to make good progress on the Uskmouth conversion project with updates on planning and permitting, along with notifications of EPC contract award and updates on potential private wire power purchase agreements with local industrial users of energy expected in the New Year. Fuel supply and the logistics associated with timely fuel delivery is an integral part of this project and our joint venture with N+P will de-risk the path to successful financial close.
We were highly encouraged to hear the Government's positive comments around tidal stream and the role it can play in a sustainable and low carbon energy grid moving forward. As an industry leader, we remain firmly committed to the commercialisation of competitively priced tidal energy throughout the UK via our world leading MeyGen project, which is ready for expansion if provided with the right Government support, and we also want to ensure that we remain at the forefront of any new opportunities for large scale tidal project development or equipment and services sales opportunities in new markets including France, Japan and Indonesia which we are working on at present."