REG - Parkmead Group (The) - Extension of Loan

ParkmeadAnnouncement

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RNS Number : 5046T  Parkmead Group (The) PLC  01 August 2025

1 August 2025

 

The Parkmead Group plc

("Parkmead" or "the Company")

 

 

Extension of Loan and Renewable Energies Exclusivity Agreement

 

Parkmead, the independent energy group focused on growth through natural gas
and renewable energy projects, announces an extension to its interest-bearing
loan to Energy Management Associates Limited ("EMAL") and an associated
continuation of its Exclusivity Agreement with EMAL.

 

Through this Exclusivity Agreement, Parkmead continues to benefit hugely
from an exclusive first right over all renewable energy opportunities which
are originated, identified or owned by EMAL. This exclusive arrangement with
EMAL has already delivered a number of significant and highly valuable project
opportunities to Parkmead. This includes the Pitreadie wind farm opportunity
which forms a key part of the proposed major Glenskinnan Renewable Energy
Park, which is being developed in partnership with Galileo Empower, a leading
European renewable energy developer. The plans include 98MW of wind power,
20MW of solar PV and 30MW of battery storage. The acquisition of 100% of the
operational Kempstone Hill Wind Farm also arose through this arrangement, with
Kempstone Hill having contributed to Parkmead's revenues since February 2022.

 

As previously announced, the Company continues to evaluate M&A
opportunities in the renewable sector and a number of these potential
opportunities in areas such as wind and solar energies, battery storage,
forestry and biomass have emanated through this agreement with EMAL.

 

For the extended period of exclusivity, agreed to 31 December 2028, two key
terms of the associated loan have been reset as follows: 1. the loan principal
has been reduced to £2.4m following repayments by EMAL to Parkmead of  a
further £270,000 in July 2025, 2. the interest rate will increase and will be
a floating rate equivalent to the Bank of England base rate (currently at
4.25%). The overall effect of this extension is that Parkmead secures
substantial exclusivity rights to new renewable energy projects at zero net
cash cost to Parkmead.

 

The entry by the Company into the Exclusivity Agreement extension and
associated loan extension with EMAL, in which Tom Cross is a director and
shareholder, is a related party transaction for the purposes of Rule 13 of the
AIM Rules. The independent Directors (being those other than Tom Cross),
having consulted with Cavendish Capital Markets Limited, consider that such
arrangements with EMAL are fair and reasonable insofar as the Company's
shareholders are concerned.

 
Enquiries:

 

 The Parkmead Group plc                                              +44 (0) 1224 622200
 Tom Cross (Executive Chairman)

 Andrew Smith (Executive Director - Business Development)

 Cavendish Capital Markets Limited (NOMAD and Broker to Parkmead)    +44 (0) 20 7220 0500
 Marc Milmo / Seamus Fricker - Corporate Finance
 Iain MacArthur - Sales

 

 

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