REG - ATOME PLC - EIS investment status granted by HMRC

AtomeAnnouncement

14/03/2024 07:00

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RNS Number : 7593G  ATOME PLC  14 March 2024

14 March 2024

 

ATOME PLC

("ATOME", "the Company", or "the Group")

 

Enterprise Investment Scheme ("EIS") investment status granted by HMRC

 

ATOME (AIM: ATOM), the only international green fertiliser project development
company on the London Stock Exchange, is pleased to announce that His
Majesty's Revenue and Customs ("HMRC") has granted EIS status for the
investment made by certain qualifying individuals in respect of the equity
fundraise which was announced on the 19 February 2024.

 

The EIS is a UK government initiative which encourages investment in
qualifying companies by offering tax benefits for qualifying investors who
subscribe for new shares. For the avoidance of doubt, EIS income tax relief is
not available for directors or employees of ATOME.

 

Subject to certain conditions being met by the company and the investors, EIS
enables a qualifying investor with a UK tax liability to claim tax relief in
the UK of up to 30% of their investment, subject to a maximum investment of
£1 million per tax year. In addition, when investors sell EIS shares, any
growth in value from an investment is potentially free from UK capital gains
tax (to qualify for this relief, income tax relief must have already been
claimed and not withdrawn by HMRC. Investors also have to hold the shares for
at least three years and the company and its group must remain EIS qualifying
for at least three years). Further details about EIS can be found here
(https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investors)
. Prospective EIS investors should seek their own tax and financial advice.

 

The directors of ATOME also believe that an investment in the Company would
potentially constitute a 'qualifying holding' for a Venture Capital Trust
("VCT") subject to certain conditions being met. A company can receive a
maximum of £5 million from EIS and VCT investors on a 12-month rolling basis.
The grant of EIS status broadens the Company's potential investor base as it
continues to develop and grow. However, the Company reiterates that it intends
to finance its first 145MW project in Paraguay at the asset level through its
subsidiary, ATOME Paraguay.

 

The 100% green fertiliser that is targeted to be produced by ATOME from 2026
has a worldwide market, none more so than in the UK and Ireland where
decarbonisation of the entire agricultural supply chain from supermarkets down
to the farm is gaining increasing traction, importance and support. ATOME
looks forward to delivering further positive news in the next months as it
moves towards Final Investment Decision and asset level-funding for ATOME's
world-scale 145MW green fertiliser facility in Paraguay. For completeness,
ATOME has an exciting 100MW project in Costa Rica as well as the Phase 2 300MW
project in Paraguay.

 

Philip Hare & Associates acted for the Company in the successful grant of
EIS status and continues to do so.

 

 

For more information, please visit https://www.atomeplc.com
(https://www.atomeplc.com) or contact:

 

 ATOME PLC                                        +44 (0) 113 337 2210
 Nikita Levine, Investor Relations
info@atomeplc.com
 Beaumont Cornish (Nominated Adviser)             +44 (0) 20 7628 3396
 Roland Cornish, Michael Cornish
 SP Angel (Joint Broker)                          +44 (0) 20 3490 0470
 Richard Hail, Caroline Rowe, Harry Davies-Ball
 Cavendish Capital Markets Limited (Broker)       +44 (0) 20 7220 0500
 Simon Hicks, George Dollemore
 Tavistock (Financial PR and IR)                  +44 (0) 20 7920 3150
 Simon Hudson, Rebecca Hislaire, Saskia Sizen     atome@tavistock.co.uk

 

About ATOME

ATOME PLC is an AIM listed company targeting green fertiliser production with
445-megawatt of projects in Paraguay and a further pipeline of potential
projects in Central America.

 

Since its admission to AIM in December 2021 ATOME signed a 145MW power
purchase agreement with ANDE, the state energy company in Paraguay for
acquired 30 hectares of land in Villeta, Paraguay for that facility, mandated
Natixis Corporate & Investment Banking and the multilateral IDB Invest to
lead the project funding and with Front End Engineering and Design studies
currently underway with the international companies Urbas and Casale. ANDE has
also allocated a further 300MW for ATOME's second project subject to
studies.

 

In Costa Rica, The National Ammonia Corporation S.A. has been formed to
develop green fertiliser projects for the region. As well as straddling the
Pacific and Atlantic Oceans, Costa Rica is a democratic Central American
country. In agriculture, Costa Rica is the second largest supplier of
pineapples in the world and is in the top ten banana growers.

 

ATOME is in the process of operational planning, sourcing and negotiations
with green electricity suppliers, equipment providers and offtake partners,
including signed memoranda of understanding and cooperation agreements in
place with key parties, to produce green fertiliser at an industrial scale
using electricity generated from hydroelectric power in Paraguay and Costa
Rica. All chosen sites are located close to the power and water sources and
export facilities to serve significant domestic and then international demand.

 

The Company has a green-focused Board which is supported by major shareholders
including Peter Levine, Schroders, a leading fund manager, and since May 2023,
Baker Hughes, a global energy technology company operating in the energy and
industry sectors.

 

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