7th Jul 2009 10:49
Ludgate Environmental Fund: Update
Ludgate Environmental Fund announces the provision of a debt facility to RAP
Ludgate Environmental Fund Limited ("LEF" or the "Fund"), the AIM-listed investment company focused on the environmental/cleantech sector, has announced the provision of a £1.0 million working capital facility (the "Facility") to Rapid Action Packaging Limited ("RAP" or the "Company"). This amount is additional to the £4.0 million invested by LEF into equity and Cumulative Unsecured Loan Stock ("CULS") of RAP in May 2008.
Established in 1997, RAP specialises in the design, manufacture and supply of innovative, ergonomic, cost effective and environmentally responsible packaging systems particularly for the "food on the move" market. The £1.0 million Facility will be used to fund equipment installation costs and planned increased stock levels in advance of a new product launch in the UK, Continental Europe and North America in the first quarter of 2010.
The Facility structured as a loan with warrants can be drawn to a maximum of £1.0 million up until 31 March 2010 and is fully repayable by May 2011. Interest on the loan is 8% per annum, payable semi-annually in arrears and, assuming the Facility is fully drawn, LEF will receive five year warrants to subscribe for new shares equivalent to 4.2% of the fully diluted share capital of RAP.
Nick Pople, Director of Ludgate Investments Ltd, LEF's Investment Adviser and a Director of RAP (appointed at the time of LEF's initial investment) said: "The planned launch by RAP of a new environmentally responsible packaging system into the food market place comes at a time when governments, retailers and consumers are all increasingly seeking ways to reduce the impact of packaging waste on the environment. This is particularly highlighted by the UK government's recent announcement of a major overhaul of all packaging over the next decade with its new packaging strategy "Making the Most of Packaging" looking to tackle the whole supply chain from production to disposal. Continued innovation by RAP has led to the development of an exciting new environmentally responsible food packaging system which will be launched on the market in early 2010 and we are happy to continue supporting the growth of RAP through the provision of this working capital facility".
Graham Williams, CEO of RAP, said: "We appreciate the provision of a working capital facility from Ludgate Environmental Fund which shows their continued belief in RAP's business and its product innovation in the food packaging arena. This additional investment will allow RAP to accelerate its planned product launch of new systems, and coincides with new government initiatives regarding waste within the packaging system. The new product launch will also expand the market sectors that RAP will be able to enter not only in the UK but also in Europe and North America."
About Ludgate Environmental Fund:
Ludgate Environmental Fund Limited ("LEF" or "the Fund") is a Jersey domiciled closed-ended investment company, listed on AIM in August 2007. Further fundraisings in March and November 2008 increased assets in LEF to approximately £50 million.
Applying an active corporate management approach, LEF invests growth capital into environmental/cleantech companies. The underlying drivers within this space are strong, increasing strains on natural resources; rising concerns over waste and pollution; increasing public support; and maturing environmental technologies. Focus sectors 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
+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 - Fairfax I.S. PLC
Ewan Leggat
+44 (0)20 7598 5368
Related Shares:
LEF.L