REG - Mast Energy Dvlpmts. - Operating & Corporate Update

Mast Energy DevelopmentsAnnouncement

22/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241122:nRSV2288Na&default-theme=true

RNS Number : 2288N  Mast Energy Developments PLC  22 November 2024

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

LEI :213800HFVHGJ9YGO9F71

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

('MED' or 'the Company')

 

Dated: 22 November 2024

 

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

 

Pyebridge Record High September Revenues Increase, Sale of Development
Project,

New Project Finance Framework Agreement, Board Changes, and Appointment of
Corporate Broker

 

Mast Energy Developments PLC is pleased to announce an update regarding
Pyebridge, the sale of one of its development projects, the execution of a new
project finance framework agreement, board changes, and the appointment of a
corporate broker. The highlights and further details of each of these matters
are outlined below.

 

Key Highlights:

 

Pyebridge Revenues and 2(nd) Genset Refurb Progress Update

·    Record high revenue for September 2024 increased by 10% to
c. £95,000 (up from c. £86k previously reported) following receipt of
Embedded Benefits;

·    Preliminary revenue for October 2024 of c. £65,000 before
receipt of Embedded Benefits;

·    Average revenue per MW per month for July to October period increases
to c. £23k;

·    Pyebridge 2(nd) (of three) 2.7MW genset's overhaul process is
progressing well and according to plan, with the refurbished long-block having
been shipped and arrived from the supplier in Austria;

·    The 2(nd) genset overhaul process has now entered its final phase,
with commissioning of the newly refurbished genset on site expected by around
the end of November and commercial production starting shortly thereafter;

·    Following the completion of the 2(nd) 2.7MW genset, Pyebridge will
have 2x 2.7MW (i.e. 5.4MW) in optimal commercial production and generating
income, effectively doubling the site's trading revenue generation capacity;

·    Expected that overhaul of 3(rd) and final 2.7MW genset will
officially commence soon, and once completed the site will have its full 8.1
MW total generation capacity in optimal production;

·    Extended period of low winds send UK power prices to 2-year high,
with the intraday price for electricity surging to c. £329 per MWh on 5
November 2024; and

·    In addition to the benefit of higher electricity sales prices meaning
higher revenues, the low winds also substantially increase the demand for
flexible generation, and resultingly the revenue and profitability of
Pyebridge.

 

Sale of Development Project

·    Completed the sale of one of MED's development projects, being
Rochdale a 4.4MW development site which has not been constructed yet;

·    A sale and purchase agreement was signed, and the entire issued share
capital of the Rochdale's project SPV, Rochdale Power Ltd was sold to Balance
Power Projects Ltd for a total purchase consideration of £258,170, which is
at a premium to the cost that MED paid for the site;

·    The sale of one of MED's development projects is in line with the
Company's refocused strategy to acquire existing constructed sites at a lower
total investment cost and shorter time to production and income generation;

·    The disposal also results in the saving of ongoing costs associated
to the Rochdale project and its SPV; and

·    The disposal proceeds will extend MED's cashflow runway and enable
the Company to fast-track its refocused strategy, and will be used for M&A
transactions and general working capital purposes.

 

Project Finance Framework Agreement

·    Entered into a framework agreement with RiverFort Global Capital Ltd
("RGC") for RGC to arrange project finance funding for additional site
acquisitions and developments (the "Framework Agreement"); and

·    Under the Framework Agreement RGC will support MED to procure and
secure project finance funding in order to grow its portfolio of MWs in
production to 300+ MW's, and further provide MED with certain financial
advisory support services.

 

Board Changes

·    Mr. Louis Coetzee and Mr. Dominic Traynor have stepped down and
retired as directors from the board; and

·    Mr. Paul Venter, the founder and existing non-executive board
director of MED will take over as interim non-executive chairman until such
time that a suitable new chairman has been appointed in due course.

 

Corporate Broker

·    Fortified Securities has been appointed as corporate broker to the
Company with immediate effect.

 

Pieter Krügel, MED CEO, commented: "We are pleased with the ongoing positive
performance and financial results of Pyebridge since the start of the site's
gensets overhaul process announced earlier this year. Pyebridge's increasing
positive performance is a testament to the critical need for flexible power
generation in the UK. The progress at Pyebridge is going well and according
to plan, with the overhaul of the 2(nd) of the site's three 2.7MW gensets
entering its final phase before coming onstream to further increase the income
and profitability of Pyebridge. Moreover, the recent surge in electricity
prices to a 2-year high as well as increased demand for flexible generation,
due to low winds severely impacting Britain's renewable generation
capabilities, are a welcome added benefit to the revenue and profitability of
Pyebridge.

 

"We are pleased to have completed the sale of one of MED's development
projects. The sale is in line with MED's refocused strategy to acquire
existing sites that have already been constructed, at a lower total investment
cost and shorter timeline to income generation compared to a development
project. The sale not only allows the Company to fast-track the implementation
of the refocused strategy, but also provides non-dilutive funding to the
Company and extending its cashflow runway, mitigating the need for a dilutive
fundraise for the foreseeable future. Additionally, we are focusing on
reducing ongoing costs, and among other measures implemented, the savings from
Rochdale's ongoing costs as well as the reduced Company board fees are
extending our cashflow runway.

 

"We are further delighted to have entered into the Framework Agreement with
RGC. This follows RiverFort's initial investment into Pyebridge earlier this
year, and the positive outcome thereof since then, and further solidifies the
relationship between MED and RiverFort. RiverFort has been a key pillar to MED
and the Framework Agreement is a significant step to support and fast track
MED's strategy to grow its portfolio of MWs in production to 300+ MWs. The
Company appreciates RiverFort's ongoing and growing support.

 

"On behalf of the Company and board, I would like to thank Mr. Coetzee and Mr.
Traynor for their service to the board, and wish them all the best with their
future endeavours."

 

 

Stay up to date with MED's latest news and updates by joining our emailing
list and social media channels, as follows:

 

MED emailing list - https://med.energy/email-alerts/
(https://med.energy/email-alerts/)

MED LinkedIn page -
https://uk.linkedin.com/company/mast-energy-developments-plc
(https://uk.linkedin.com/company/mast-energy-developments-plc)

MED X (formerly Twitter) handle - @mastplc

 

 

Further details of Key Highlights:

 

Disposal of Development Project

 

MED has signed a share purchase agreement and completed the sale of the entire
issued share capital of the Rochdale's project SPV, Rochdale Power Ltd to
Balance Power Projects Ltd for a total consideration paid to MED of £258,170.

 

The disposal of one of MED's development sites is in line with the Company's
refocused strategy to acquire existing constructed sites at a lower total
investment cost and time to production and income generation. The disposal
also results in the saving of ongoing costs associated to the Rochdale project
and its SPV. The disposal proceeds will extend MED's cashflow runway and allow
the Company to fast-track its refocused strategy, and will be used for M&A
transactions and general working capital purposes.

 

Project Finance Framework Agreement

 

MED has entered into a framework agreement to engage RGC to arrange project
finance funding for new site developments.  RGC has a proven track record of
venture debt capital fundraising.

MED has agreed to grant RGC a ROFR for a minimum participation of 50% of any
project finance capital funding requirement of each additional site SPV that
is acquired or established by MED. To the extent that MED funds the same value
as RGC's nominated investors, the relevant SPV will share the economic rights
of each SPV on a 50/50 basis. The minimum economic interest (or free carry) of
MED in each new site SPV will be no less than 20%, with no capital investment
obligation from MED (i.e. the interest is retained in consideration of MED's
operational management of the SPV). This framework agreement enables MED to
underwrite no less than 50% of the capex of a SPV as a long-term debt at SPV
level, providing enhanced surety of access to capital as the portfolio is
grown to the targeted 300+ MW.

 

Further, RGC is working with MED to restructure the existing debt secured on
the Pyebridge Site to reprofile as a non-interest bearing long-term facility
with repayments linked solely to realised net revenue. Tax advice is currently
being sought to ensure capital preservation is best realized for MED's group
and the board expect to update the market in due course on the execution of
such a debt reprofile.

 

 

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           CEO

                                                                    Developments PLC
 Jon Belliss        +44 (0)20 7399 9425                             Novum Securities      Corporate Broker
 Guy Wheatley, CFA  (+44) 7493 989014                               Fortified Securities  Corporate Broker

                    guy.wheatley@fortifiedsecurities.com
                    (mailto:guy.wheatley@fortifiedsecurities.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEAXFFAFPLFFA