Dukemount Capital PLC Environmental Energy Project Update (0178C)
June 16 2021 - 2:00AM
UK Regulatory
TIDMDKE
RNS Number : 0178C
Dukemount Capital PLC
16 June 2021
Dukemount Capital Plc
16 June 2021
Dukemount Capital Plc
("Dukemount" or the "Company")
Environmental Energy Project
Dukemount Capital Plc, the property management and long dated
income specialist is pleased to announce that it has secured
funding with regard to the Joint Venture Agreement with flexibility
power expert HSKB Ltd ("HSKB"), which it announced on 22 March
2021.
This funding is a GBP6.5m facility ("Facility") to be provided
by Global Corporate Finance Opportunities 14, in which Alpha Blue
Ocean ("ABO") acted as arranger by way of convertible loan notes
("Notes") convertible at 95% of the lowest daily VWAP in the 10
trading days prior to conversion, plus warrants issued on a 1:4
basis with each tranche at an exercise price of 120% of the lowest
daily VWAP in the 10 trading days prior to the issuance of the
Notes to which they are attached (other than with respect to the
first tranche of Notes, where the exercise price is the lower of
(a) GBP 0.00604 and (b) 120% of the lowest Daily VWAP over the ten
trading days prior to the issuance of the first tranche of Notes)
("Warrants"). The facility continues for 24 months and is unsecured
and interest free. A 3% commitment fee is payable in two stages as
the Facility is drawn down.
This funding provides Dukemount with a GBP6.5m facility, of
which it expects a draw down of GBP3m will be lent to fund the HSKB
Joint Venture ("Joint Venture") over the next six months, beginning
with a tranche of GBP1.2m. The remaining GBP3.5m will be drawn
down, if required by Dukemount, to fund future projects in the
fast-growing UK flexible 11kv power sector, where HSKB can deliver
a strong pipeline of deals.
It is anticipated that the lenders to the Joint Venture will
regard Dukemount's first GBP3m funding as equity and proceed to
fund up to 60% of the build cost.
Draw down of the Facility is conditional upon approval by
shareholders of the agreement for the Facility including the
conversion terms and warrant terms at a general meeting to take
place within the next 30 days. A notice of general meeting will be
issued shortly.
Draw down is also conditional upon issue of a prospectus for the
admission to trading of the shares to be issued on any conversion
of the Notes and exercise of the Warrants. The Company will file
and seek approval from the FCA of the prospectus as soon as
possible and in any event within the next 120 days.
HSKB has been in discussion with a commercial lender to fund the
remaining GBP3.5m of the total GBP6.5m estimated build costs for
the Joint Venture and now that Dukemount's funding contribution to
the Joint Venture has been agreed, Dukemount expects HSKB to be
able to confirm the terms of the additional GBP3.5m with such
lender in the near future.
As well as being significant in magnitude, as compared to the
market capitalisation of the Company, the innovative and favourable
nature of the funding which Dukemount has secured is both a
reflection of the institutional interest in the flexible power
sector, as well as being the result of the Company's knowledge of
long-dated income funding and finance.
Through this funding, Dukemount has achieved a
disproportionately beneficial leverage to the Joint Venture, while
protecting the equity position of shareholders in an optimal
manner.
With its contribution to funding the HSKB Joint Venture now
agreed, Dukemount expects this to be the first completed milestone
on its previously stated goal of creating a company which has up to
GBP100m in project value over the foreseeable future.
Whilst relatively new to the UK, ABO is well established outside
UK. The fact that ABO agreed to support the Company is a measure of
the Company's potential as well as the potential of the Joint
Venture. Dukemount is also pleased to have obtained this Facility
without diluting its interest in the Joint Venture.
Geoffrey Dart commented:
"With Dukemount's contribution to the HSKB Joint Venture agreed
on attractive terms, a key part of the transformation of Dukemount
has now been secured. Dukemount can now take its place in the
flexible power sector as a significant player, with the prospect
and capability of adding further projects, and hence further long
dated income for shareholders."
Pierre Vannineuse, CEO of ABO, commented:
"ABO is proud to have been selected as a financing partner to
facilitate the transformation of Dukemount in the flexibility power
sector. This financing facility will provide Dukemount with the
necessary flexibility to help increase value for its shareholders
by having the capital necessary to fund future projects."
Market Abuse Regulation (MAR) disclosure
Certain statements in this announcement contain inside
information for the purpose of Article 7 of EU Regulation
596/2014.
About Alpha Blue Ocean
Created in 2017 by Pierre Vannineuse, Hugo Pingray and Amaury
Mamou-Mani, Alpha Blue Ocean is a young and dynamic family office
with the mission of revolutionizing the financial industry by
offering innovative and tailored risk-adjusted investments.
Alpha Blue Ocean operates through a direct, rational, and
efficient approach in providing alternative financing solutions
through PIPE (Private Investments in Public Equities) deals. ABO
has signed more than 70 deals with commitments totalling more than
EUR1bn over more than 3 years with companies listed in North
America, Europe and Asia.
For further information, please visit
www.dukemountcapitalplc.com or contact:
Media Enquiries Zak Mir: +44 (0)7867
527 659
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