REG - Coro Energy PLC - Acquisition of Vietnam Roof Top Solar Portfolio

Coro EnergyAnnouncement

15/06/2023 07:00

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RNS Number : 7707C  Coro Energy PLC  15 June 2023

15 June 2023

 

Coro Energy Plc

("Coro" or the "Company" and together with its subsidiaries the "Group")

 

Acquisition of Energised 2.39MW Vietnam Roof top Solar Portfolio

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, announces that it has signed the acquisition of a
rooftop solar portfolio from the shareholders of KIMY Trading and Service JSC
("KIMY"), as previously announced on 25 November 2022 and 29 March 2023.

 

As initially announced on 25 November 2022, the Company entered into a period
of exclusivity on a 100% interest in a leased rooftop solar portfolio in
Vietnam across four locations close to Saigon with an aggregate generating
capacity of 3.25 megawatts ("MW") currently held by KIMY (the "Portfolio").
The Portfolio has been operational for two years and benefits from an existing
power purchase agreement with a remaining eighteen year term, with the power
off-taker being state owned Electricity Vietnam ("EVN"). Following
comprehensive due diligence and site visits, one of the Portfolio's rooftop
systems has been removed from the acquisition, such that the Portfolio now
totals only 2.39MW.  The acquisition price has also been adjusted
accordingly.

 

The total acquisition price is therefore US$1.3 million (US$543/MW) split as
follows:

·    At completion:

o  Assumption by Coro of US$600,000 of existing specialist renewables debt
with a Vietnamese bank;

o  US$111,912 payable in cash, of which US$30,000 is ring fenced to secure
certain required firefighting certificates;

o  US$285,000 payable in new ordinary shares in the Company to be issued at
the mid- market price six months following completion and locked in for 18
months from completion;

·    A further US$300,000 in cash in six equal monthly instalments from
completion.

The cash consideration is anticipated to be settled from the existing cash
balance of the Company's Vietnam subsidiary and future cash flows from the
existing 3 megawatt project accompanied by the acquisition project revenues.
To end of April 2023, cash receipts from the 3 megawatt project total
US$115,000

 

KIMY incurred a loss of approximately US$195,000 in the year to 31 December
2022 which includes various cost of sales and administration expenditure which
will not be inherited by Coro post-acquisition. Consequently, the acquisition
is expected to be both cash positive and profitable from completion.

 

Completion of the acquisition of the Portfolio is expected to occur in Q4 2023
and further announcements will be made in due course, as appropriate.

For further information please contact:

 Coro Energy plc                            Via Vigo Consulting Ltd

 James Parsons, Executive Chairman

 Ewen Ainsworth, Chief Financial Officer

 Cenkos Securities plc (Nominated Adviser)  Tel: 44 (0)20 7397 8900

 Adrian Hadden

 Ben Jeynes

 Vigo Consulting (IR/PR Advisor)            Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Charlie Neish

 WH Ireland (Broker)                          Tel: 44 (0)20 7220 1670 / 44 (0)113 946 618

 Harry Ansell

 Katy Mitchell

 Gneiss Energy Limited (Financial Advisor)    Tel: 44 (0)20 3983 9263

 Jon Fitzpatrick

 Doug Rycroft

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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