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

Fertoz ore stockpile at Butte, Montana
November 27 2018
The company’s lead rock phosphate projects are Wapiti and Fernie in British Columbia.
The company expects to open its vault for even more cash takings
January 21 2019
Contracted revenues were $3.7 million last quarter but didn’t include Solo app sales for Samsung watches.
ShareRoot imagery
November 11 2018
The consumer data security provider is aiming to grow revenue and reduce spending in the coming year.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

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