Simec Atlantis energy has entered a share placement agreement with New Technology Capital Group (NTCG) to raise £12m (€13.7m).
The proceeds will be used to allow Atlantis to take advantage of investment opportunities arising over the course of next year across the Company’s tidal energy, waste to energy, hydro and sustainable infrastructure project portfolio.
The US-based investor will make an initial investment of £2m (€2.18m) for new shares with the value of £2.09m (€2.28m) on or about 17 December 2020.
Additional investments of three tranches of £2m (€2.18m) each will be made by (NTCG) for new shares with the value of £2.09m (€2.28m) per tranche approximately three, six and nine months after the initial investment.
Atlantis may also obtain further additional investments from NTCG, in an aggregate amount of up to £4m (€4.36m) with the consent of the investor, for new shares with the aggregate value of £4.18m (€4.55m) after the initial and subsequent investments.
At the time of the initial investment, Atlantis has agreed to issue to NTCG, conditional on admission, 947,368 new shares in satisfaction of a commencement fee due to the investor.
In addition, it will issue 1.8m new shares for an aggregate subscription price of a nominal amount, to be applied against the new shares to be issued in the investments.
There will also be 1.9m in warrants with an exercise period of 36 months from the date of issue with an entitlement to subscribe for one new share per warrant at an exercise price of £0.30371.
The agreement can be cancelled prior to the second tranche of investment at the election of Atlantis for a cancellation fee of £48,000 (€52,685).
The proceeds derived from the agreement are intended to be used to allow Atlantis to take advantage of investment opportunities arising over the course of next year across the Company’s tidal energy, waste to energy, hydro and sustainable infrastructure project portfolio.
Atlantis chief executive Tim Cornelius said: “We are delighted to be working with a US institutional investor who is backing Atlantis to continue to create shareholder value through further strategic investment across our diverse project pipeline.
“Putting this agreement in place is prudent in these unpredictable times leading into BREXIT and post COVID-19 recovery and access to investment capital will allow our project teams to ensure we are capable of capitalising on new opportunities that we expect will present themselves during 2021.”