Kedco adds further equity funding
Kedco has secured approximately £166,860 (€203,700.77) through a placing of 12,835,385 new ordinary shares (Placing Shares), with a number of existing and new investors, at an issue price of 1.3 pence per ordinary share.
The proceeds are to be used for working capital purposes and for continuing investment in the Company's portfolio of biomass electricity and heat generation projects.
'We are pleased to announce the close of this successful fundraising which included a number of new and existing shareholders. We continue to make good progress with all of the projects in the Company's pipeline and in particular we expect to complete initial commissioning of the first 2MW of our Newry plant, including the first export of electricity to the Electricity Grid, by the second half of June 2012,' says Gerry Madden, CEO of Kedco.
The Company also announced that it has allotted 3,644,224 new ordinary shares (Conversion Shares) to its 22.14% shareholder Farmer Business Developments (FBD) at 1.515 pence per share. This comes as a result of FBD exercising its right of conversion under its February 2011, €1,200,000, 10% Convertible Loan Note (the Conversion). FBD's holding will remain at 22.14% of the ordinary shares of the Company, however the Conversion is dependant on the Placing Shares being admitted to AIM.
An application will also be made for the admission of 16,479,609 new ordinary shares in the Company to trading on AIM. These will comprise of 12,835,385 Placing Shares and 3,644,224 Conversion Shares. The Shares, which will be issued and fully paid, will rank pari passu in all respects with the existing ordinary shares of the Company. Admission of the Placing Shares and Conversion Shares to trading on AIM is expected to occur on 4 May 2012, increasing the total number of voting rights to 311,562,755.
'This will be a significant step for the Company as we move from being a clean energy project developer to a clean energy producer,' Madden concludes.