REG - Plexus Holdings Plc - Loan Agreements Update

Plexus HoldingsAnnouncement

18/12/2023 11:30

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RNS Number : 1608X  Plexus Holdings Plc  18 December 2023

Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil Equipment &
Services

 

18 December 2023

 

Plexus Holdings PLC

 ('Plexus' or 'the Company')

 

Loan Agreements Update

 

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business
and owner of the proprietary POS-GRIP® friction-grip method of wellhead
engineering, is pleased to provide an update with regards to the previously
announced loan and option agreements (the 'Transaction'), which were notified
by the Company on 18 September 2023.

 

Alongside the loan agreements, which had a total value of £700,000, the
Company entered into Primary and Secondary call option agreements ('Option
Agreements') with Ben van Bilderbeek and Plexus Property International Ltd
('PPI') (the 'Lenders'). These Option Agreements provided the Lenders with the
right to exercise a Primary option to have their portion of the loans repaid
in shares owned by Plexus Ocean Systems Limited ('POSL') in Kincardine
Manufacturing Services Limited ("KMS"), a precision engineering company in
which Plexus holds a 49% interest following a strategic investment of
£735,000 in December 2018. The Secondary option enabled the Lenders to
acquire the balance of POSL's 49% shareholding in KMS for an additional sum of
£300,000.

 

On 31 December 2022, POSL's holding in KMS was valued at £838,000 and held as
an investment in an associate of the Company.  Ahead of the Transaction, the
Company commissioned an independent valuation of its stake in KMS, following
which the independent directors have concluded that an increased valuation of
£1m should be applied to POSL's KMS shares for the purposes of the Option
Agreements.

 

The Company is pleased to confirm that the Lenders have elected to exercise
the Primary and Secondary options and will be issued with the 49% of shares
held by POSL in KMS in return for a further cash payment of  £300,000 to
Plexus; this is in addition to the original £700,000 loan funds associated
with the Primary option.

 

The sale of this non-core asset has now generated a total of £1m of
additional funding for Plexus, which will be used to provide additional
working capital for the Company whilst it continues to pursue a pipeline of
opportunities and potential orders, including in the fast-expanding
decommissioning sector where Plexus' technology can enable the safe and
permanent plug and abandonment of wells at the end of their lives.

 

**ENDS**

 

For further information please visit www.plexusplc.com
(http://www.plexusplc.com) or contact:

 

 Plexus Holdings PLC                Tel: 020 7795 6890

 Ben van Bilderbeek, CEO

 Graham Stevens, CFO

 Cavendish Capital Markets Limited  Tel: 0131 220 6939

 Derrick Lee

 Adam Rae

 St Brides Partners Ltd             plexus@stbridespartners.co.uk

 Isabel de Salis

 Paul Dulieu

 

NOTES

 

Plexus Holdings plc (AIM: POS)

Plexus is an IP led company focussed on establishing its patented leak-proof
POS-GRIP® wellhead and associated equipment as the go-to technology for
energy markets whilst making a genuine contribution to the oil and gas
industry's ESG and NetZero goals by championing "through the BOP" (Blow-out
Preventer) designs, and lifetime leak-proof HG® metal-to-metal sealing
systems.  Having protected the environment for many years through these
technological innovations, the Company was awarded the London Stock Exchange's
Green Economy Mark in July 2021 and continues to place emphasis on its ability
to reduce harmful methane emissions and unnecessary maintenance and
intervention costs.

 

Headquartered in Aberdeen, the Company has provided leak-free wellhead
performance in over 400 wells worldwide and worked with an array of blue-chip
oil and gas company clients.  As well as generating direct revenues from
securing orders for surface production wellheads particularly in the UK and
European North Sea regions, the Company has several licencing/collaboration
agreements with major partners including FMC Technologies, which is a
subsidiary of TechnipFMC and Cameron, an SLB Group company. Cameron has a
non-exclusive licence to use the POS-GRIP and HG® metal-to-metal seal method
of wellhead engineering for the development of conventional and unconventional
oil and gas surface wellheads, and Plexus entered into a Cooperation
Agreement, which enabled Plexus to return to the Jack-up Exploration
(Adjustable) Wellhead rental business for 'through the BOP' jack-up
applications, where Cameron will help to provide Plexus with sales leads and
market insight through a formal Sales Advisory Board.

 

Plexus' current suite of products and applications include: "HG" wellheads,
which combine POS-GRIP technology with gas tight leak free metal-to-metal
sealing; the Python® subsea wellhead, developed in a Joint Industry Project
with several industry leaders; the POS-SET™ Connector for the
de-commissioning and P&A market; and Tersus-PCT, an innovative HP/HT tie
back connector product. Having proved the superior uniquely enabling qualities
of POS-GRIP Technology, Plexus is now also focused on establishing its
technology and equipment in other markets such as Plug and Abandonment
de-commissioning, carbon capture, gas storage, hydrogen and geothermal where
it can play an important role in reducing harmful methane emission risks as
operators strive to deliver on ESG commitments and NetZero goals in a safe and
cost-effective way.

 

For more information visit: https://www.plexusplc.com/
(https://www.plexusplc.com/)

 

 

 

 

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