UK-based Simec Atlantis Energy has entered into a share placement agreement with a US-based investor New Technology Capital Group to raise up to £12 million ($16 million).
Atlantis will get an initial investment of £2,000,000 for new shares with the value of £2,090,000 on or about 17 December 2020.
Additional investments of three tranches of £2,000,000 each will come for new Shares with the value of £2,090,000 per tranche approximately three, six and nine months after the initial investment.
Atlantis may also obtain further additional investments from the investor, in an aggregate amount of up to £4,000,000, with the consent of the Investor, for new shares with the aggregate value of £4,180,000 after the initial and subsequent investments.
At the time of the initial investment, Atlantis has agreed to issue to the investor, conditional on admission, 947,368 new shares in satisfaction of a commencement fee due to the investor.
In addition, Atlantis will issue 1,800,000 new shares for an aggregate subscription price of a nominal amount, to be applied against the new shares to be issued in the investments.
There will also be 1,900,000 warrants with an exercise period of 36 months from the date of issue with an entitlement to subscribe for one new share per warrant at an exercise price of £0.30371.
The deal can terminate prior to the second tranche of investment at the election of Atlantis for a cancellation fee of £48,000.
Atlantis will use the proceeds to take advantage of investment opportunities arising over the course of next year across the company’s tidal energy, waste to energy, hydro and sustainable infrastructure project portfolio.
Tim Cornelius , CEO of Atlantis, said: “We are delighted to be working with a US institutional investor who is backing Atlantis to continue to create shareholder value through further strategic investment across our diverse project pipeline.
“Putting this agreement in place is prudent in these unpredictable times leading into BREXIT and post COVID-19 recovery and access to investment capital will allow our project teams to ensure we are capable of capitalising on new opportunities that we expect will present themselves during 2021.”