29th May 2009 07:00
29 May 2009
Renewable Energy Holdings plc ("REH" or the "Company")
CETO Update and Solar Energy Letter of Intent
Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operator of proven and innovative renewable energy technologies notes the recent announcement by Carnegie Corporation Limited ("Carnegie") in relation to the completion of its fundraising of AUD$5.75 million and is also pleased to announce that it has entered into an exclusive non binding letter of intent to acquire PVStrom Energy Systems GmbH & Co. KG's ("PVStrom") photovoltaic development assets in Sicily, Italy.
CETO
The Board of REH notes the announcement from Carnegie in relation to the completion of its fundraising of AUD$5.75 million which it has closed in Australia. As announced on 11 May 2009, one of the conditions precedents to the completion of the sale to Carnegie of REH's CETO Wave Technology (the "Transaction") is Carnegie having sufficient funds to cover the current CETO operating budget of approximately AUD$2m at completion. Completion of the Transaction is expected in September 2009 ("Completion"). Following the issue of the new shares in Carnegie in relation to the fundraising and Completion, REH will hold approximately 34 per cent. of the then issued share capital of Carnegie.
Letter of Intent
REH is also pleased to announce that it has entered into an exclusive non-binding letter of intent with PVStrom with regard to REH acquiring PVStrom's existing solar photovoltaic developments. It is intended that REH and PVStrom will create a new company in Italy which REH will capitalise 90% and PVStrom 10% ("Newco"). PV Strom's current development portfolio of projects totals some 18MW of land options granted or land acquired, all in the Sicily region of Italy, with the medium term target being a developed portfolio of some 50MW and will be injected into Newco.
Dependent on the successful completion of due diligence, REH and PVStrom expect to enter into a binding agreement by the end of June 2009. A further announcement will be released in due course.
REH's Chief Executive Officer, Mike Proffitt, said:
"We are very pleased that Carnegie has been successful in closing its fundraising in Australia, which ensures the continued development of CETO as it moves closer to commercialisation, and we look forward to completing the CETO transaction with them in September.
"We are also delighted to be looking more closely at the Solar PV sub-sector, and especially Sicily, as it is a geography that has one of the best solar resources in Europe.
"It is the Company's stated strategy to grow and diversify its revenue streams across different geographical, economic and technological areas and should we enter into the agreement with PV Strom, their local pipeline and development expertise will complement REH's corporate structure and development discipline across sub-sectors and geographies."
For further information, please contact:
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Renewable Energy Holdings plc |
Tel: 01624 641199 |
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Mike Proffitt, Chief Executive |
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Ambrian Partners - Nominated Adviser & broker |
Tel: 020 7634 7405 |
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Richard Swindells / Andrew Craig |
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Financial Dynamics |
Tel: 020 7831 3113 |
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Jonathon Brill/Billy Clegg/Edward Westropp/Alex Beagley |
Related Shares:
REH.L