20th Sep 2021 11:25
(Alliance News) - Gore Street Energy Storage Fund PLC on Monday announced a GBP72.6 million fundraise after committing the last of its funds to the acquisition of a 57 megawatt construction-ready energy storage project in Leicester.
The fund, which invests in energy storage assets, said the expected total capital expenditure for the Leicester project will be around GBP22 million over the next 12 to 18 months. The project is currently scheduled to become operational in 2023.
"The project will be connected to National Grid's main transmission network rather than the local distribution network, which means that it will operate without an intermediary distribution network operator. This will reduce capex and operating costs and will be Gore Street's first transmission connected site," the company said.
Following the acquisition, the company will issue 67.9 million shares at 107.0p each in a placing and PrimaryBid offer. The issue price represents a discount of 7.8% to the closing mid-price of 116.0p on Friday.
Gore Street Energy shares were down 5.1% to 110.08 pence each in London on Monday late morning.
"The company's current financial resources are now largely committed following this 57MW acquisition and Gore Street is proposing an issue of new ordinary shares to fund its ambitious portfolio expansion plan," the company said.
The firm added that its pipeline includes opportunities in new markets, such as North America and Western Europe.
The placing will be managed and conducted by the company's joint corporate brokers and joint bookrunners Shore Capital and JP Morgan Securities PLC.
Chief Executive Alex O'Cinneide said: "This UK acquisition is a further significant development for the company, which offers opportunities for value creation as construction progresses and once operational, will be accretive to our income generating assets.
"This particular asset also benefits from being transmission connected providing attractive running cost savings which will provide an additional tailwind to our positive cash flow."
By Greg Roxburgh; [email protected]
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