REG - Molecular Energies - Strategic progress in Green House Capital Group

Molecular EnergiesAnnouncement

04/03/2024 07:00

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RNS Number : 3622F  Molecular Energies PLC  04 March 2024

4 March 2024

 

MOLECULAR ENERGIES PLC

("Molecular" or the "Company")

 

Strategic progress in Green House Capital Group

EIS advance assurance granted

 

Molecular Energies (AIM: MEN), the international energy company, provides an
update on Green House Capital Group PLC (Molecular 75% shareholder).

 

Key Points:

·   Green House Capital Group ("GHC"), has received advance assurance from
HM Revenue & Customs ("HMRC") for prospective investment under the
Enterprise Investment Scheme ("EIS")

·    Further strategic progress set out in a new verified GHC Investor
Presentation published on website of GHC at www.ghcplc.com
(http://www.ghcplc.com)

 

 

GREEN HOUSE CAPITAL GROUP

 

EIS

GHC has been granted advance assurance for prospective EIS investment under
the UK government initiative which encourages investment in qualifying
early-stage companies by offering tax benefits to qualifying investors who
subscribe for new shares in the GHC.

 

Subject to certain conditions being met by the company and the investor, the
scheme enables a qualifying investor with a UK tax liability to claim income
tax relief in the UK of up to 30% of their investment, subject to a maximum
investment of £1 million per tax year. In addition, when investors sell EIS
shares, any growth in value from an investment is potentially free from UK
capital gains tax (to qualify for this relief, income tax relief must have
already been claimed - and not withdrawn by HMRC. Investors also have to hold
the shares for at least three years, and the company must remain
EIS-qualifying for at least three years). Further details about EIS can be
found here
(https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investors)
. Prospective EIS investors should seek their own tax and financial advice.

 

Based on the EIS advance assurance given by HMRC, the directors of GHC also
believe that an investment in the company would constitute a 'qualifying
holding' for a Venture Capital Trust ("VCT").

 

This is a positive development for GHC and its future funding plans, whether
through IPO or other new share issue as an independent company to enable the
expansion and growth of the business.

 

STRATEGIC PROGRESS OF GHC

GHC is pleased to announce that material progress has been made in various
businesses of that Group. A summary is set out below and more details are
described in the Investor Presentation.

 

Hyso

-    Internationally applicable biochar carbon removal projects with
significant potential for carbon offsets and products for agriculture, cement,
and asphalt industries. Targeted to commence production in H2 2024

-      Feedstock and offtake agreements in place

 

Dual Fuel

-      Testing shows 31% diesel retardation (reduction of diesel displaced
by hydrogen)

-      Further shows 29% increase in fuel efficiency giving more energy
produced per unit of fuel

-      Company moving into mobile dual fuel and hydrogen mobile generators
for off-grid contractors and plant hire businesses

-      Offtake clients in place

-      Business with international applicability anticipated to commence in
latter part of 2024

 

Aton 6

-      Advanced negotiations with significant clients for company services
in a wide variety of sectors

-      Business model of medium-to-long-term contracts with positive cash
flow

-      Benefits from inter-group and related party businesses

 

Peter Levine, Chair, commented:

 

"The MEN Board believes that significant value has already been generated
throughout the Green House businesses. The grant of EIS advance assurance from
HMRC is a important milestone that will assist in funding the growth and
expansion Green House.

 

"We look forward to being able to report on further progress as soon as
possible."

 

 

For more information, please visit www.molecularenergiesplc.com
(http://www.molecularenergiesplc.com) or contact:

 

 Molecular Energies PLC                                              +44 (0)20 7016 7950

 Peter Levine, Chairman                                              info@molecularenergiesplc.com (mailto:info@molecularenergiesplc.com)

 Rob Shepherd, Group FD

 Cavendish Capital Markets Limited (Nominated Adviser & Broker)      +44 (0)20 7220 0500

 Simon Hicks, George Dollemore

 Tavistock (Financial PR & IR)                                       +44 (0)20 7920 3150

 Simon Hudson, Nick Elwes, Saskia Sizen

 

 

Notes to Editors

Molecular Energies PLC is an AIM listed company at the forefront of energy
development and has interests across the energy spectrum, from an oil and gas
project to the green and alternative energy sector.

 

The Company currently has an oil exploration asset in Paraguay. The Company
has two separate subdivisions which are focused on early-stage opportunities
in the green and/or alternative energy sub-sector.

 

Activities in the green and alternative energy space are being carried out
direct through Molecular and under the Green House Capital brand and through
AIM listed Atome Energy PLC, a green hydrogen, ammonia, and fertiliser company
operating in Paraguay, Costa Rica and Iceland, in which Molecular currently
has 18.8%.

 

With a strong strategic and institutional base of support, no third-party
financial debt and a Chairman whose interests as the largest shareholder are
aligned to those of its shareholders, Molecular gives UK investors access to
an energy growth story combined with world class standards of corporate
governance, environmental and social responsibility.

 

 

-ends-

 

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