REG - Coro Energy PLC - Vietnam Rooftop Solar Acquisition Update

Coro EnergyAnnouncement

29/03/2023 07:00

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RNS Number : 5175U  Coro Energy PLC  29 March 2023

29 March 2023

 

Coro Energy Plc

("Coro" or the "Company")

 

Energised 3.25MW Vietnam Rooftop Solar Acquisition Update

 

Coro Energy Plc, the South East Asian energy company with a natural gas and
clean energy portfolio, announces that it has entered into a revised Heads of
Terms with the shareholders of KIMY Trading and Service JSC ("KIMY"),
following its due diligence process, in respect of the potential 3.25
megawatts acquisition, announced on 25 November 2022.

 

As 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 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 due diligence and site visits, legal work on the final transaction
documents is now underway. The Company has renegotiated some elements of the
Heads of Terms with the vendor to reflect some works that will be needed post
completion and has now signed a revised Heads of Terms, which extends the
exclusivity.  The total acquisition price remains circa US$1.7 million
(US$548/MW) albeit with revised consideration scheduling as follows:

·    At completion:

o  Assumption by Coro (via acquisition of KIMY) of US$950,000 of existing
specialist renewables debt with a Vietnamese bank;

o  US$130k cash payable, of which US$30k is ring fenced to secure certain
required local fire safety certifications;

o  US$0.25 million payable in new ordinary shares in the Company, locked in
for 18 months from completion;

·    A further US$80,000 cash and US$80,000 of new ordinary shares in the
Company, payable after 2 months on demonstration that the local certification
is in place with no curtailment

·    A further US$0.25 million in cash in six equal monthly instalments
from completion.

Further protections in respect of the outstanding documentation will be
incorporated into the final transaction documents albeit it is understood that
achieving the documentation is purely an administrative process.

 

Further announcements will be made in due course.

 

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

 Katy Birkin

 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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