REG - EnergyPathways PLC - Drawdown of £1m Finance and Issue of ATM Shares

EnergypathwaysAnnouncement

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RNS Number : 6804C  EnergyPathways PLC  30 April 2026

30 April 2026

EnergyPathways plc

("EnergyPathways" or the "Company")

Financing Agreement Drawdown for MESH Project FEED

Issue of ATM Shares

EnergyPathways (AIM: EPP), an energy transition company, has, following its
announcement of the £15 million Financing Agreement on 28 April 2026, drawn
down a first tranche of £1 million (before costs and expenses).

The net proceeds of this drawdown will be deployed to accelerate the
development of the Company's Marram Energy Storage Hub project ("MESH" or the
"MESH Project"), including progression of what is expected to be world's
largest compressed air energy storage ("CAES") facilities, to be located here
in the UK east Irish Sea, through Front End Engineering Design (FEED).

The MESH CAES development pathway is not contingent upon the award of a gas
storage licence. The Company will advance the CAES long-duration energy
storage project independently while continuing to progress in parallel the gas
and hydrogen storage and low-carbon hydrogen production elements of the MESH
Project.

Additionally, a sum of money has been set aside to fulfil the Company's
proposed work commitments set out in its gas storage licence application, for
which a decision is pending from the North Sea Transition Authority (NSTA).

Pursuant to the terms of the Financing Agreement, in conjunction with the
drawdown, the Company has issued 5,060,917 warrants to the Investor,
representing 30% of the value of the drawdown. The warrants are exercisable at
a 40% premium to the Reference Price* which for this drawdown is 5.93 pence
per Ordinary Share and the warrants are exercisable at 8.3 pence per Ordinary
Share.

In addition, pursuant to the ATM Facility arrangement announced on 28 April
2026, 6,939,727 shares ("ATM Shares") have been issued at their nominal value
of 1 pence per share. The ATM Shares will be sold in the market to provide
further working capital to the Company.

 

Admission and Voting Rights

 

Application has been made for the 6,939,727 ATM Shares to be admitted to
trading on AIM ("Admission"). Admission is expected to become effective and
dealings in the ATM Shares are expected to commence on or around 6 May 2026.

 

Upon Admission, the Company's issued ordinary share capital will consist of
232,097,903 Ordinary Shares with one voting right each. The Company does not
hold any Ordinary Shares in treasury. Therefore, from Admission the total
number of Ordinary Shares and voting rights in the Company will be
232,097,903. With effect from Admission, this figure may be used by
Shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change to their interest in, the Company under the FCA's Disclosure Guidance
and Transparency Rules.

 

*The Reference Price is calculated as the average of the daily VWAP of the
Company' ordinary shares for the five consecutive trading days prior to the
date of each applicable loan drawdown.

 

Defined terms in this announcement are the same as those in the announcement
of the Financing Agreement made by the Company on 28 April 2026.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR). Upon the publication of this announcement via
Regulatory Information Service (RIS), this inside information is now
considered to be in the public domain. The Directors of the Company are
responsible for this announcement.

 

 

Enquiries

 Investor questions on this announcement                                      https://energypathways.uk/link/PKv1Yr (https://energypathways.uk/link/PKv1Yr)
 We encourage all investors to share questions on this announcement via our
 investor hub

 EnergyPathways                                                               Tel: +44 (0)207 466 5000, c/o Burson Buchanan (Financial PR)
 Ben Clube / Max Williams

                                                                            Email : info@energypathways.uk

 Cairn Financial Advisers LLP (Nominated Adviser)                             Tel: +44 (0)20 7213 0880
 Jo Turner / Louise O'Driscoll / Sandy Jamieson

 SP Angel Corporate Finance LLP (Broker)                                      Tel: +44 (0)20 3470 0470
 Richard Hail / Adam Cowl

 

Subscribe to our news alert service: energypathways.uk
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For further information on EnergyPathways visit www.energypathways.uk and
@energy_pathways on X.

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

 

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

 

About MESH

 

MESH will be a new, large scale, energy storage and decarbonisation facility
that is expected to provide a secure and dependable supply of affordable
low-carbon energy for the UK market for over 25 years.

 

The MESH integrated energy system solution comprises large-scale Long Duration
Energy Storage ("LDES"), flexible low-carbon power capacity and low-carbon
hydrogen and graphite production with the potential to branch into low-carbon
ammonia production. MESH will connect its LDES integrated storage system using
existing infrastructure to the UK grid and nearby offshore wind capacity to
help harness value from some of the billions of pounds of the UK's wasted wind
power.

 

The MESH system is designed to capture and store curtailed offshore wind power
in offshore salt caverns as compressed air. The MESH energy storage system
combines associated large-scale hydrogen, thermal and natural gas storage
capacity in geo-storage features (the salt caverns). During periods of low
renewable energy availability, the LDES stored energy resources will be
utilised to generate low-carbon flexible power for the UK's grid via
compressed air expansion, thermal energy and hydrogen-compatible gas turbine
systems to generate electricity.

 

The MESH facility will also produce affordable low-carbon hydrogen using
methane pyrolysis technology for which EnergyPathways has exclusive rights of
use within the UK. The hydrogen can be used to further decarbonise the MESH
flexible power generation system using its hydrogen-compatible gas turbine
system. The by-product of the MESH hydrogen production facility is a
high-grade form of synthetic graphite.

 

In addition to supplying dispatchable low-carbon electricity to the grid,
MESH-produced hydrogen can support the UK's emerging Project Union hydrogen
network, contributing to broader emissions reductions across the energy
system.

 

The MESH project is targeted to be operational by 2030, subject to government
approvals and financing, in order to contribute to the Government's 2030 Clean
Power ambitions. EnergyPathways aims to play its role in supporting the
Government in accelerating the UK's energy transition.

 

Investor Engagement with EnergyPathways

Engage with us by asking questions, watching video summaries and seeing what
other shareholders have to say. Navigate to our Interactive Investor website
here: https://energypathways.uk/ (https://energypathways.uk/)

 

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