Sydney – 27 July 2022 – MPower Group Limited (ASX: MPR)
Leading specialist renewable energy, battery storage and microgrid business, MPower Group Limited (ASX: MPR) is pleased to advise that it has received firm commitments to raise $1.7 million (before costs) in new equity funding to advance the Company’s Build Own Operate (BOO) strategy and for working capital purposes.
Chief Executive Officer Nathan Wise said: “The Company has witnessed considerable interest in this capital raising and would like to welcome new investors to the register and thank existing shareholders for their ongoing support.
“The new funds secured will provide the Company with additional flexibility as it continues to advance its strategy to establish a portfolio of renewable energy assets across Australia, progresses the acquisition of the Lakeland Solar and Storage Project and continues to grow its service offering to a broad range of customers.
“MPower remains committed to the immediate development of its 5MW renewable energy assets and continues to engage with a number of potential partners to accelerate the roll-out. There are a number of value catalysts pending and we look forward to providing updates as these materialise.”
The capital raising includes the issue of 55 million new fully paid ordinary shares at 2.4 cents per share to a range of sophisticated and professional investors to raise $1.32 million under the Company’s ASX Listing Rule 7.1 and 7.1A placement capacity. Each new share will include a 2:3 attaching option, with a strike price of 4.5 cents and expiry four years from the date of issue. Attaching options will be issued and quoted on the ASX, subject to approval at an upcoming EGM and ASX listing requirements being met.
The Tag Private Group, MPower’s largest shareholder that is associated with the Company’s Chairman and CEO, is also supporting the capital raising. A further $0.38 million (15.8 million shares and attaching options) is to be placed to the Tag Private Group on the same terms, subject to shareholder approval at the upcoming EGM.
Funds from the placement will be used to advance project development initiatives across MPower’s BOO portfolio of renewable energy assets, support the acquisition of the Lakeland Solar and Storage Project (refer ASX announcement: 16 May 2022) and for working capital purposes.
Leading Melbourne-based boutique investment advisory, PEAK Asset Management acted as lead manager to the capital raise and is entitled to a placement fee of 6%, plus the issue of 12 million options exercisable at 4.5 cents with an expiration date of four years from the date of issue.
Ends
Contact
For further information, please contact:
Nathan Wise
Chief Executive Officer
(02) 8788 4600
Ben Jarvis
Six Degrees Investor Relations
0413 150 448
This announcement has been authorised by Nathan Wise, Chief Executive Officer.
About MPower
MPower Group Limited (ASX: MPR) is a technology-led company with a long history specialising in the delivery of reliable on-grid and off-grid power solutions for blue chip corporate and government customers. Headquartered in Sydney, MPower's team of professionals has successfully delivered turn-key solar, battery storage and micro grid projects across the region.