REG - i(x) Net Zero PLC - $1.5M Investment in Enphys Management Company

I (X) Net ZeroAnnouncement

08/03/2022 07:00

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RNS Number : 9404D  i(x) Net Zero PLC  08 March 2022

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i(x) Net Zero PLC

("i(x) Net Zero" or the "Company")

i(x) Net Zero invests $1.5M in Enphys Management Company

i(x) Net Zero PLC (AIM: IX.), the investing company which focuses on Energy
Transition and Sustainability in the Built Environment, is pleased to
announce that it has agreed to invest an additional $1.5 million in cash in
Enphys Management Company, LLC ("EMC"), which is i(x) Net Zero's partnership
with the Latin America Investment Group ("LAIG"), a business development and
investment group that is focused on Latin America. EMC pursues private and
public opportunities focused on renewables and energy transition in Latin
America and has a direct ownership in Enphys Acquisition Sponsor, LLC ("EAS"),
the sponsor company of Enphys Acquisition Corp. ("EAC"), a NYSE-listed SPAC
targeting renewable energy businesses in Latin America, in which EMC also has
an ownership.

This investment is in line with i(x) Net Zero's commitment to accelerate the
growth of its partner companies through the disbursement of catalytic capital
and increases i(x) Net Zero's exposure to EMC, EAS and EAC's upside as they
pursue private and public opportunities focused on renewables and energy
transition in Latin America, a significant growth market.

The investment comprises an initial payment of $500,000 and 10 monthly
payments of $100,000 each commencing in July 2022, each of which is expected
to be funded from i(x) Net Zero's existing cash resources.

 

Following the initial payment, i(x) Net Zero's holding in EMC will increase by
3.5% to 14.5%.  However, if the Company fails to make any of the payments
agreed to, the 3.5% is subject to clawback in its entirety. As part of the
investment, this LLC Agreement between i(x) Net Zero and LAIG has been amended
and restated with effect from 7 March 2022 and, as part of these arrangements,
the managing member's responsibilities will be assumed by a board of
directors, including the right to consent to transfers and any transfers will
also be subject to rights of first refusal in favour of EMC and the other
members.  Under the amended and restated LLC Agreement, i(x) Net Zero has the
right to appoint one director to EMC's board and will nominate its Chief
Investment Officer, Pär Lindström. i(x) Net Zero will continue to be able to
increase its total equity ownership up to 25% of EMC by making additional
investments in EMC or by sourcing investments for its platform companies and,
in the event that within two years of the date of the Enphys Operating
Agreement, i(x) Net Zero is unable to source an aggregate of $150 million of
committed capital to investment opportunities sponsored by or affiliated with
EMC, then the right to redeem i(x) Net Zero's investment would be limited to
5% (adjusted pro rata for funds raised).

 

This investment also indirectly increases i(x) Net Zero's stake in EAC. The
Company expects this additional investment to be accretive to its net asset
value.

 

Steve Oyer, Chief Executive Officer of the Company, said: "We are excited to
collaborate with the EMC and LAIG teams and believe there are many
opportunities to foster the next chapter of their strong track record of
success in Latin America. EMC has tremendous potential to become the regional
champion of energy transition and serve the increasing demand for renewable
energy from a growing population in a sustainable manner. Overall, we believe
this transaction will be accretive to i(x) Net Zero's net asset value."

 

Jorge de Pablo, Founder and CEO of Enphys Management Company, LLC, added:
"This is an exciting time in the Latin American renewable markets, with
attractive valuations, limited competition and strong deal flow.  EMC is
committed to maximising this current window of opportunity and the new funds
from i(x) Net Zero will help us achieve this objective. We thank i(x) Net Zero
for its continued support."

 

 

- Ends -

 

 

For further information visit https://ixnetzero.com/ (https://ixnetzero.com/)
 or contact:

 i(x) Net Zero                               Via Buchanan below
 Steve Oyer - Chief Executive Officer
 Pär Lindström - Chief Investment Officer
 Marc Chennault - Chief Financial Officer

 H & P Advisory Limited                      +44 20 7907 8500

 Financial Adviser & Joint Broker
 Neil Passmore
 Ernest Bell
 Andy Crispin (Sales)

 Shore Capital                               +44 20 7408 4050

 Nominated Adviser & Joint Broker
 Tom Griffiths
 David Coaten

 Iain Sexton

 Buchanan
 Helen Tarbet                                +44 7872 604 453
 Simon Compton                               +44 7979 497 324
 Ariadna Peretz                              +44 7488 495 969

 

 

Notes to Editors

About i(x) Net Zero PLC

i(x) Net Zero PLC is an AIM quoted investing company that provides its
shareholders the opportunity to create long-term capital growth with
positive, scalable, measurable and sustainable impact on the environment and
on the communities it serves.

In accordance with its belief that the world's biggest problems are also the
biggest market opportunities, i(x) Net Zero focuses on two critical areas in
which it aims to make a positive impact: (i) Energy Transition and (ii)
Sustainability in the Built Environment. The Company uses a multi-strategy
investment approach, providing the companies in which it invests with the
expertise and catalytic capital to help them grow. To date, i(x) Net Zero has
invested in biofuels, direct air capture (carbon removal), renewable energy,
sustainable workforce housing and net zero construction technology.

i(x) Net Zero is a provisional signatory to the UN Principles for Responsible
Investing. The Company has received the London Stock Exchange's Green Economy
Mark.

About Enphys Management Company

 

Enphys Management Company, LLC is i(x)Net Zero's partnership with the Latin
America Investment Group ("LAIG"). Founded in 2008, LAIG is a business
development and investment group that is focused on Latin America. EMC will
pursue private and public opportunities focused on renewables and energy
transition in Latin America.

EMC is led by Jorge de Pablo, who has 20 years' experience building and
investing in public and private companies in the energy sector in Latin
America. Over the past 12 years, he has been responsible for deploying
approximately $5 billion of capital across the region, of which approximately
$3.5 billion has been focused on energy and energy transition assets and has
produced an IRR of 22 per cent. (including realised and current portfolios).

 

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