TIDMARL
RNS Number : 5552W
Atlantis Resources Limited
20 August 2015
THIS ANNOUNCEMENT, AND THE INFORMATION CONTAINED HEREIN, IS NOT
FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY,
IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA,
CANADA, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER
JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO
Atlantis Resources Limited
Placing and Trading Update
Atlantis Resources Limited (AIM: ARL, "Atlantis", or the
"Company"), a recognised global leader in the tidal power sector,
has raised GBP2.5 million before expenses through the conditional
placing ("Placing") of 5,952,380 new ordinary shares (the "Placing
Shares") at a placing price of 42 pence per share.
Highlights
-- Placing of GBP2.5 million before expenses at 42 pence per share.
-- Proceeds will be used to fund project development activities
across the Atlantis portfolio and to secure opportunities for
portfolio growth.
Trading Update
The Company will release its interim results for the six months
to 30 June 2015 on or before 30 September 2015. The draft results
are in line with expectations.
Tim Cornelius, CEO of Atlantis, commented:
"We are very pleased with the continued support of our
shareholders demonstrated through this successful placing. The
funds raised will allow us to replicate our success at the MeyGen
project and bring other opportunities to fruition around the
UK."
Enquiries:
Atlantis Resources via FTI Consulting
Tim Cornelius, Chief Executive Officer
Duncan Black, Chief Financial Officer
Peel Hunt LLP (Nominated Adviser and
Broker) +44 (0)20 7418 8900
Daniel Harris
Jock Maxwell Macdonald
Euan Brown
FTI Consulting +44 (0)20 3727 1000
Ben Brewerton
Alex Beagley
Stephanie Blott
James Styles
About Atlantis (www.atlantisresourcesltd.com)
Atlantis Resources Limited is a vertically integrated turbine
supplier and project developer in the tidal power industry. The
Atlantis group holds equity positions in a diverse portfolio of
tidal stream development projects, which includes a stake of 85% in
MeyGen Limited, the company developing the MeyGen project in
Scotland. The MeyGen project is the largest consented tidal stream
power project in Europe, and is scheduled to commence generation in
2016.
Alongside its project development interests, Atlantis owns a
portfolio of patents and patent applications relating to tidal
power generation and sells tidal generation equipment and
engineering services to third party developers as well as its own
projects. The Atlantis group, which is revenue generating, also
conducts industrial research and development and provides
specialist consulting services globally.
Introduction
The Company has raised GBP2.5 million (before expenses) by way
of a conditional placing of 5,952,380 new ordinary shares of no par
value at a price of 42 pence per share (the "Placing Price").
The Placing Price represents a discount of approximately 6.7 per
cent. to the closing mid-market share price of 45 pence per
ordinary share on 19 August 2015 (the latest practicable date prior
to the date of this announcement). The Placing Shares will
represent approximately 6.0 per cent. of the issued share capital
of the Company prior to the issue of the Placing Shares.
Background to and reasons for the Placing
Atlantis considers its tidal power project development business
to be a critical engine for growth of the Company. Whilst the
Company's key focus remains the delivery of the MeyGen Phase 1A
project, because of the lead times for developing tidal power
projects it is essential that Atlantis is also actively working on
the development of future projects to secure the growth of the
business and enhance shareholder value. Atlantis has identified
four tidal power development projects that it is seeking to pursue
in the near term, and intends to apply the proceeds from the
placement to their further development towards financial close and
securing project funding:
-- MeyGen Phase 1B - Atlantis has already commenced the
development of the next phase of the MeyGen project, Phase 1B,
which will incorporate the foundation system being developed by
Atlantis under the GBP10 million Energy Technologies Institute
Tidal Energy Converter programme. The further development of MeyGen
is a key priority for Atlantis towards realising the full 398 MW
potential capacity for the project.
-- Anglesey Skerries and Strangford Lough - Atlantis completed
the acquisition of Marine Current Turbines Limited ("MCT") from
Siemens on 1 July 2015. MCT has a portfolio of six UK tidal power
projects under development, of which Atlantis has prioritised the
near term development of two projects, the Anglesey Skerries
project in Wales, which is at an advanced stage of development, and
the Strangford Lough project in Northern Ireland, which, although
at an earlier stage of development, has been extensively studied as
a result of MCT's 1.2 MW demonstration project at the site and is
considered to present an attractive project opportunity for the
near future.
-- Sound of Islay - Atlantis and ScottishPower Renewables
("SPR") are in discussions in relation to bringing together their
respective tidal power project businesses in Scotland. Under the
proposed transaction, Tidal Power Scotland Holdings Limited
("TPSHL"), the holding company for the MeyGen project, would
acquire SPR's Sound of Islay and Ness of Duncansby tidal power
development projects and SPR would then become a minority
shareholder in TPSHL and the MeyGen project, alongside Atlantis and
Scottish Enterprise. The Sound of Islay project, which has a
planned generating capacity of 10MW, is at an advanced stage of
development and the 100MW Ness of Duncansby site is at an earlier
stage in the project cycle.
Details of the Placing
The Company has, conditional on admission of the Placing Shares
("Admission"), raised GBP2.5 million before expenses by means of
the Placing.
Peel Hunt, as agent for the Company, has conditionally placed
5,952,380 of the Placing Shares with investors at a price of 42
pence per Placing Share on the terms set out in a placing agreement
entered into between the Company and Peel Hunt (the "Placing
Agreement"). The Placing is conditional, inter alia, upon the
Placing Agreement becoming unconditional in all respects and
Admission occurring on or before 25 August 2015 or such later date
as is agreed in writing between the Company and Peel Hunt, but in
any event not later than 8.00 a.m. on 8 September 2015.
The Placing Shares will, following Admission, rank pari passu
with the existing issued ordinary shares and will have the right to
receive all dividends and other distributions declared, made or
paid in respect of the issued ordinary share capital of the Company
following Admission.
Application has been made to the London Stock Exchange Plc for
the Placing Shares to be admitted to trading on AIM. The Placing
Shares are expected to be admitted to AIM and commence trading at
8.00 a.m. on 25 August 2015.
Trading Update
The Company also issues the following trading update ahead of
the publication of its full interim results for the six months
ended 30 June 2015 due for publication on or before 30 September
2015.
The unaudited draft results for the six months to 30 June 2015
show a loss of S$7.5 million (GBP3.4 million) which is in line with
the full year loss for 2014 of S$16.2 million (GBP7.4 million). As
for the financial year 2014, the loss is principally driven by
overhead expenses for the group. As the acquisition of MCT
completed on 1 July 2015, the 30 June 2015 financial statements do
not include any impact of the MCT acquisition other than
transaction costs.
The unaudited consolidated cash position of the Atlantis group
as at 30 June 2015 was S$26.0 million (GBP11.9 million). As at 31
July 2015, the group cash position (excluding MeyGen) was S$5.6m
(GBP2.6m) with further funds from committed turbine sales,
consulting revenue and grants to be received during the remainder
of 2015.
IMPORTANT NOTICE
The information contained in this announcement is restricted and
unless an available exemption applies is not for release,
publication or distribution, directly or indirectly, in whole or in
part, in, into or from the United States (including its territories
and possessions, any state of the United States and the District of
Columbia, collectively the "United States") Australia, Canada,
Japan or South Africa or any jurisdiction in which the same would
be unlawful. This announcement is for information purposes only,
does not constitute a recommendation regarding the Placing and does
not constitute an offer or invitation to sell or issue or the
solicitation of an offer to buy, acquire or subscribe for any
shares in the capital of the Company. In particular, this
announcement does not constitute an offer or invitation to sell or
issue or the solicitation of an offer to buy, acquire or subscribe
for any shares in the capital of the Company in the United States,
Australia, Canada, Japan or South Africa or any other jurisdiction
where such offer or solicitation may be unlawful or require
preparation of any prospectus or other offer documentation or would
be unlawful prior to registration, exemption from registration or
qualification under the securities laws of any such jurisdiction.
Any failure to comply with the restrictions set out in this
important notice may constitute a violation of the securities laws
of such jurisdictions.
(MORE TO FOLLOW) Dow Jones Newswires
August 20, 2015 02:00 ET (06:00 GMT)
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