REG - Kibo Energy PLC - Kibo Subsidiary - Update on the Completion of JVA

Kibo EnergyAnnouncement

23/10/2023 07:15

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RNS Number : 8853Q  Kibo Energy PLC  23 October 2023

Kibo Energy PLC (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

LEI Code: 635400WTCRIZB6TVGZ23

Share code on the JSE Limited: KBO

Share code on the AIM: KIBO

ISIN: IE00B97C0C31

('Kibo' or 'the Company')

 

Dated: 23 October 2023

Kibo Energy PLC ('Kibo' or the 'Company')

 

Kibo Subsidiary Announces Update on the Completion of Its Binding Joint
Venture Agreement

 

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy-focused
development company, announces that further to its previous announcements
dated 12 July 2023, 4 August 2023, 1 September 2023 and 22 September 2023,
respectively, its subsidiary Mast Energy Developments PLC ('MED'), a UK-based
multi-asset owner, developer and operator in the rapidly growing flexible
market, has today signed a replacement first definitive and binding Joint
Venture Agreement ('JVA') with Proventure Holdings (UK) Ltd, part of the
Proventure Group ('Proventure'). This follows a rearrangement of the investor
consortium participation as previously set out in a Company RNS dated 1
September 2023.

 

The terms of the replacement JVA are the same in all material aspects as that
of the previous JVA, as noted in a Company announcement dated 12 July 2023.
Further, under the terms of the JVA, Proventure is required to make an initial
interim payment of £2,000,000 (the 'Interim Payment') to the Joint Venture
Special Purpose Vehicle ('SPV'), to be received no later than 10 November
2023. The consortium's proof of funds has already been provided by Proventure.
As such, MED has extended the completion long-stop date for the JVA as well as
the payment of the balance of the investment, amounting to c. £3.9 million,
by no later than 30 November 2023. The JVA further commits both parties to
promptly finalise terms on a second joint venture as previously detailed in an
announcement dated 12 July 2023.

 

Louis Coetzee, CEO of Kibo Energy, says: "We are pleased that MED is
partnering with a reputable institutional investor such as Proventure and have
full confidence that the parties will conclude the transaction in accordance
with the revised long-stop date, paving the way for the further success of the
second joint venture."

 

Further details can be found in the full MED announcement, which is available
below and at med.energy (https://med.energy/?page_id=3140) :

 

-------------------------

Dated: 23 October 2023

 

Mast Energy Developments PLC ('MED' or 'the Company')

 

MED Binding Joint Venture Agreement Completion Update

 

Mast Energy Developments PLC, the UK-based multi-asset owner, developer and
operator in the rapidly growing flexible power market, announces that further
to its previous announcements dated 12 July 2023, 4 August 2023, 1 September
2023, and 22 September 2023 respectively, it has today signed a replacement
first definitive and binding Joint Venture Agreement ('JVA') with Proventure
Holdings (UK) Ltd which is part of the Proventure Group ('Proventure'),
following a rearrangement of the investor consortium participation as set out
in our announcement of 1 September 2023. Proventure was founded by Mr. Kona
and is an Indian based multi-national group specialising in renewable energy
investments globally. The terms of the replacement JVA are the same in all
material aspects as that of the previous JVA as set out in our announcement of
12 July 2023. Further, under the terms of the JVA, Proventure is required to
make an initial interim payment of £2,000,000 (the "Interim Payment") to the
Joint Venture SPV (the "JV"). The Interim Payment must be received by latest
10 November 2023, and the consortium's proof of funds has already been
provided by Proventure. As a result, MED has further extended the completion
long-stop date for the JVA. The revised completion date and the payment of the
balance of the investment due of c. £3.9m is now expected by no later than 30
November 2023 (except where a later date has been agreed by the Company and
Proventure, on that date). The further extension is required to allow
Proventure to complete the compulsory statutory process, as previously
explained. Upon completion of this process, the remaining balance of the JVA
funds due will be promptly transferred into the UK to complete the JVA
investment.

 

The JVA referred to above also commits both parties, as set out in MED's
announcement dated 12 July 2023, to promptly finalise terms on a second joint
venture. As such, notwithstanding the extension of completion of the first JVA
as referred to above, the parties will endeavour to finalise terms for the
second JV promptly.

 

Pieter Krügel, CEO of MED, commented: "We are delighted to have concluded
the agreement with the replacement lead-investor, and excited to partner with
a well-established and reputable institutional investor such as Proventure.
The parties are fully committed to finalise the statutory arrangements
required to ensure the successful completion and transfer of funds as quickly
as possible. We are confident that we will be able to complete the transaction
in accordance with the revised long-stop date."

ENDS

This announcement contains inside information for the purposes of the UK
version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ('UK MAR'). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

For further information please visit www.med.energy (http://www.med.energy/)
or contact:

 Pieter Krügel                 Info@med.energy (mailto:Info@med.energy)                              Mast Energy Developments PLC  CEO
 Jon Belliss                   +44 (0)20 7399 9425                                                   Novum Securities              Corporate Broker
 Zainab Slemang van Rijmenant  zainab@lifacommunications.com (mailto:zainab@lifacommunications.com)  Lifa Communications           Investor & Media Relations Advisor

 

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulations (EU) no. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ('UK MAR'). Upon the publication of this announcement, this information
is now considered to be in the public domain.

**ENDS**

 

For further information please visit www.kibo.energy (http://www.kibo.energy/)
or contact:

 

 Louis Coetzee                 info@kibo.energy (mailto:info@kibo.energy)                            Kibo Energy PLC             Chief Executive Officer
 James Biddle Roland Cornish   +44 207 628 3396                                                      Beaumont Cornish Limited    Nominated Adviser
 Claire Noyce                  +44 20 3764 2341                                                      Hybridan LLP                Joint Broker
 Damon Heath                   +44 207 186 9952                                                      Shard Capital Partners LLP  Joint Broker
 Zainab Slemang van Rijmenant  zainab@lifacommunications.com (mailto:zainab@lifacommunications.com)  Lifa Communications         Investor and Media Relations Consultant

 

Johannesburg

23 October 2023

Corporate and Designated Adviser

River Group

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