21st May 2018 10:10
LONDON (Alliance News) - Atlantis Resources Ltd on Monday proposed a placing of new shares to raise up to GBP20 million through an accelerated bookbuilding process.
The turbine supplier is planning to issue up to 57.1 million new shares at a price of 35 pence each.
The funds raised will be used to pay for the acquisition of Welsh power station SIMEC Uskmouth, whose net present value is estimated at GBP123 million, from SIMEC UK Energy Holdings Ltd.
With the completion of the front end engineering design in the second half of 2018, the power station will be converted from being coal-fired to burning pellet derived from non-recyclable waste products. The station is expected to have an initial capacity of 220 megawatts.
The consideration for the acquisition is to be satisfied entirely in Atlantis ordinary shares resulting in SIMEC owning 49.99% of the enlarged share capital.
Atlantis' shares are currently suspended from trading AIM in London as the deal constitutes a reverse takeover. Upon readmission, Atlantis will be renamed SIMEC Atlantis Energy Ltd.