3rd Oct 2019 12:53
(Alliance News) - Gresham House Energy Storage Fund PLC on Thursday announced a placing of 56.2 million new shares at 103 pence each to fund a number of pipeline projects.
The price per share represents a 1.9% discount to the 105p closing middle market price on the stock on Wednesday. The shares were untraded on Thursday, also at 105p.
Based on the above figures and if all shares are successfully placed, Gresham House Energy Storage would raise up to around GBP57.9 million. Cantor Fitzgerald Europe will act as sole bookrunner for the placing, with the placing itself to be accretive to net asset value for existing shareholders.
The money will be used for pipeline acquisitions which will be added to the firm's energy storage projects portfolio, including those being developed exclusively for the fund by Gresham House and Noriker Power Ltd. These, plus upgrades to existing projects, will take the company's operational projects to 229 megawatts in total by the end of the first quarter of 2020.
Furthermore, the fund's manager, Gresham House Asset Management Ltd, is conducting due diligence on a further pipeline including four operational energy storage systems and project rights for another six energy storage systems.
This pipeline has an investment value estimate of more than GBP200 million.
The number of shares issued is subject to investor demand and, if the number of shares exceeds 36.2 million, the company will seek shareholder approval at its October 16 general meeting. The latter condition is because Gresham House Energy Storage doesn't currently have authority to issue more than 36.2 million shares without pre-emption rights.
By Anna Farley; [email protected]
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