6th Oct 2009 12:05
London, 6 October 2009
Ludgate Environmental Fund Invests GBP5M in New Earth
Ludgate Environmental Fund Limited ("LEF" or "the Fund"), the AIM-listed investment company focused on the environmental/cleantech sector, has announced an investment of GBP5.0 million into New Earth Solutions Group Limited ("New Earth"), a UK waste treatment and renewable energy company.
The investment has been structured as GBP3.0 million through the subscription for preferred ordinary shares and GBP2.0 million as a 12 month, 10 percent Convertible Loan Note. This investment represents a first closing of the GBP15.0 million equity fundraising announced by New Earth in August 2009. The funds will be used to accelerate the growth of both New Earth's waste treatment and renewable energy businesses.
Nick Pople, Director of Ludgate Investments Limited, Investment Adviser to Ludgate Environmental Fund, said: "The strength of the management team and what they have delivered to date, alongside the company's potential to become a leading player in the development of new waste treatment technologies in the UK are key attractions of New Earth to us."
John Shakeshaft, Chairman of Ludgate Environmental Fund, added: "Given our core focus on and our investment experience in waste management and resource recovery, we are particularly pleased to be investing in New Earth at this stage in the company's development."
Bill Riddle, Chairman of New Earth, said: "I am delighted to have Ludgate Environmental Fund on board as an investor. The Ludgate investment team is highly respected in the cleantech sector and will add significant value as we rapidly expand our waste treatment and energy from waste facilities throughout the UK."
About New Earth:
New Earth Solutions Group Limited is a UK business and comprises the waste treatment company New Earth Solutions Ltd and the renewable energy company New Earth Energy Ltd.
New Earth Solutions helps local authorities to meet their obligations to divert waste under the EU Landfill Directive and contributes to composting and recycling rates. It has existing and planned operations in the south and central England and contracts to receive waste from the local authorities of Bournemouth, Dorset, Bristol, Kent, West of England Partnership, Gloucestershire and Leicestershire. It has pioneered enclosed composting and biological treatment in the UK since it was created seven years ago.
New Earth Solutions' key technology is the Advanced Bio Stabilisation System. This temperature-controlled composting process uses sophisticated air handling equipment to prevent odour or emissions of bio-aerosols associated with less robust waste treatment processes. In addition to the treatment of biodegradable wastes, New Earth Solutions' technology captures other recyclables such as plastics, glass, ferrous and non-ferrous metals, all helping with the meeting of statutory recycling targets.
New Earth Energy was launched in September 2008, as a new renewable energy venture. It is developing and delivering innovative third party advanced thermal technologies to support the use of waste-derived feedstock for renewable power plants and combined heat and power schemes for public and private customers.
Websites: www.newearthsolutions.co.uk www.newearthenergy.co.uk
About Ludgate Environmental Fund:
Ludgate Environmental Fund Limited is a Jersey domiciled closed-ended investment company listed on AIM in August 2007. Further fundraisings completed in March and November 2008 have seen assets increase to just over £50m.
Applying an active corporate management approach, Ludgate Environmental Fund invests growth capital into environmental/cleantech companies. The underlying drivers in this sector are strong: increasing strains on natural resources; rising concerns over waste and pollution; increasing public support; and maturing environmental technologies. Focus areas of the Fund include alternative energy; waste management and resource recovery; energy efficiency; water management; industrial process advances and emission reduction technologies.
Website: www.ludgateenvironmental.com
Media Enquiries:
David Hopkins Carbon International PR
+ 44 (0)20 7483 7202
Ludgate Environmental Fund:
Chairman, John Shakeshaft
+44 (0)20 7591 4800
Ludgate Investments Limited:
Nick Pople / Nigel Meir
+44 (0)20 7621 5770
NOMAD - PricewaterhouseCoopers LLP:
Melville Trimble
+44(0)20 7213 8898
Broker - Matrix Corporate Capital LLP :
Paul Fincham
+44 (0)20 3206 7175
Related Shares:
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