Proactive Investors - Run By Investors For Investors

Aggregated Micro Power to raise £8.5mln to retire convertible loan stock

The placing requires shareholder resolutions to be passed by the company's shareholders
Currency
Note holders are free to convert their notes into shares instead, if they wish

Aggregated Micro Power Holdings PLC (LON:AMPH) plans to raise £8.5mln through the placing of shares at a pound a pop to retire convertible loan stock.

Shares in the specialist provider of distributed heat, power and renewable fuels closed at 110p on Friday.

READ: New acquisitions light a fire under Aggregated Micro's profit performance

Once it has the cash from the share issue, it intends to issue the call notice in respect of the £10.01mln outstanding fixed rate secured 8% series I and series II convertible loan notes, due for redemption in 2021.

Directors and management of the company currently hold, in aggregate, £2.22mln of the convertible loan notes and have committed to convert their notes into shares, which leaves around £7.79mln of loan notes that could be redeemed, on top of which there will be accrued interest of around £130,000 that will have to be paid to the noteholders.

It is entirely possible that some note-holders will follow the example of the company’s executives and convert their notes into shares, in which case, the money raised from this will be used, in order of priority, as follows:

  • Fuels business working capital and investment in growth (including fees) - £5,000,000
  • Urban Reserve - £3,000,000
  • Service & Maintenance business expansion - £500,000

"We are delighted and very grateful for the support shown by our existing and new shareholders in difficult market conditions. The proceeds from the placing will enable us to simplify our balance sheet structure and provide working capital to accelerate our growth," said Richard Burrell, the chief executive of Aggregated Power.

The company said it continues to trade in line with expectations. In the five months to the end of August, the company had unaudited revenue of £14.5mln, which is ahead of the corresponding period of 2018.

View full AMPH profile View Profile

Aggregated Micro Power Holdings PLC Timeline

Related Articles

An energy plant
August 13 2018
The exclusive contract will run its course for two years and includes a one -year extension option
Mergers and acquisitions graphic
Thu
Swift’s investors will vote on its planned acquisition of ad specialist Medical Media.
electric vehicle charging
January 04 2019
AMP wants to add 25 sites in Greater London and extend its reach into the North-West around Liverpool and Manchester

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use