Shares in Ampeak Energy Limited (AIM:SAE, OTC:SMAYF, FRA:7K8), a battery storage developer, rose 8% to 2.80p on Tuesday after it announced a new equity investment in its flagship AW1 project.
JBR Energy Holdings, a special purpose vehicle owned by various directors of Jones Bros Ruthin, Ampeak's construction partner on the project, has acquired a 24.7% stake in AW1 Storage Holdings for £7.8 million.
The consideration comprises £3.9 million for equity in the project's holding company and £3.9 million for a shareholder loan to AW1 Energy Storage, leaving Ampeak with a 50.6% majority stake in AW1 Storage Holdings.
One of JBR Energy's directors is Huw Jones, who also owns Jones Bros.
Half the proceeds will be ringfenced for an expansion of the AW1 site, a condition of the sale agreed with Cardiff Capital Region as part of its loan arrangement.
The expansion is expected to increase AW1's capacity from 240 megawatt hours to 480 megawatt hours, with financial close expected next year after the first phase reaches commercial operation.
Ampeak said the investment supported its valuation assumptions for its project portfolio at £260,000 per megawatt.