10th Feb 2014 09:22
LONDON (Alliance News) - Pires Investments PLC Monday said it has invested in Rame Energy PLC as part of a USD3.2 million fundraising ahead of the energy consultant, engineer and power project developer's IPO later expected in the first-half of 2014.
In a statement, Pires said it invested GBP410,000 in the form of a loan that can be converted to equity as part of the fundraising.
Rame is seeking to admit its shares to trading on London's AIM during the first half of 2014, according to Pires.
"This pre-IPO investment reflects our strategy of taking stakes in value-producing companies which plan to come to the market in the near term and where some initial cash can facilitate their IPO and help their business develop. The board believes the company has been able to invest on quite favourable terms. We hope this will be the first of a number of such transactions," Peter Redmond, chairman, said in a statement.
According to Pires, Rame has a strong presence in the Chilean wind power market and has been involved in the development and construction of a significant part of Chile's installed wind capacity.
Rame believes believes the necessary bank and equity funding for the first project will be in place in the near future, and that funding for the second project will be available from the same source, Pires says.
Pires said Rame will repay the loan in eight quarterly instalments if the IPO doesn't happen within 12 months of drawdown. If the IPO occurs more than six months after drawdown, Pires said it will be able to convert the loan into equity.
In 2012 Rame made a USD1.0 million pretax profit.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
PIRI.L