i(x) Net Zero PLC $2.5m Enphys funding commitment (4849I)
07 Agosto 2023 - 3:00AM
UK Regulatory
TIDMIX.
RNS Number : 4849I
i(x) Net Zero PLC
07 August 2023
The information contained within this Announcement is deemed by
i(x) Net Zero plc to constitute inside information as stipulated
under the Market Abuse Regulation (EU) No. 596/2014 as it forms
part of UK law by virtue of the European Union (Withdrawal) Act
2018 ("MAR").
07 August 2023
i(x) Net Zero PLC
("i(x) Net Zero" or the "Company")
i(x) Net Zero commits up to US$2.5 million to Enphys Management
Company
i(x) Net Zero PLC (AIM: IX.), the investing company which
focuses on the Energy Transition, is pleased to announce that it
has committed to invest an additional US$2.5 million into Enphys
Management Company ("EMC") and that its wholly owned subsidiary
i(x) Investments LLC has entered into a revised EMC LLC Agreement
with LAIG Investments.
The investment , the cost of which will be spread over the next
four years and will immediately take the Company's ownership in
Enphys from its current level of 14.5% to 30.0%. The additional
cash investment, together with the increased valuation at which the
investment was agreed generates an uplift in the Net Asset Value of
the Company's total holding in EMC from $10.3 million to $16.7
million, based on the valuation as at 31 December 2022. 10% of the
issued capital in EMC is subject to pro-rata clawback if payments
by the Company are either stopped or not made when due in
accordance with the revised terms and a further portion subject to
additional clawback if a minimum of US$1 million is not funded in
full, provided that the Company will retain at least a 20% interest
in EMC. In addition if before 5 August 2025 EMC's fair market value
falls below $25 million and EMC issues additional equity
securities, the Company will benefit from anti dilution provisions
to ensure that that the value of its equity interest does not fall
below the amount contributed.
The new funding, being made from the Company's existing cash
resources, will provide additional support to EMC for budgeted
working capital, certain other approved costs and investments into
new assets as it initally progresses towards a merger opportunity
for its SPAC, Enphys Acquisition Corp, with the intention of
forming a major renewables energy group that can be a regional
champion for sustainability in the Americas and later expanding its
assets under management with new assets and new investment
structures.
EMC is looking at a range of public and private investment
opportunities focused on renewables and energy transition in Latin
America and has a direct ownership in Enphys Acquisition Sponsor,
LLC, the sponsor company of Enphys Acquisition Corp., a NYSE-listed
SPAC targeting renewable energy businesses in Latin America.
These revised funding provisions replace the previously agreed
mechanism for the Company to invest additional capital to increase
its interest in EMC such that its holding could increase to 25% of
EMC. The Company has also agreed a revised distribution waterfall
with LAIG and EMC to provide once unreturned cash capital
contributions have been returned in full, LAIG will receive an
amount equal to 50% of all returned cash capital contributions and
thereafter pro-rata between the owners. As all of the Company's
contributions have been in cash, this maintains the Company's right
to the first distributions up to an amount equal to its capital
contributions. This replaces the previous waterfall of returns and
preferred returns. The ability of LAIG and EMC to redeem the
Company's interest at a 2.5x multiple of the Company's
contributions has been amended so that it will now cease if the
fair market value of the Company's interest remains at or above
US$19.5 million for a period of 12 months. LAIG and its founder
have also entered into certain security arrangements in favour of
the Company until such time.
The board of EMC will now be amended to give the Company two
directors with LAIG having the right to appoint three
directors.
Pär Lindström, Chief Executive Officer of the Company, said :
"This investment is reflective of our belief of the significant
potential contained within Enphys and our strategy at i(x) Net Zero
to own considerable stakes in our portfolio companies. We look
forward to supporting the company as it looks to establish itself
as a leading operator in the alternative energy sector in Latin
America. "
- Ends -
This announcement contains inside information.
For further information visit https://ixnetzero.com/ or contact:
i(x) Net Zero Via Buchanan below
Pär Lindström - Chief Executive
Officer
Canaccord Genuity Limited
Nominated Adviser & Broker +44 20 7523 8000
Max Hartley
Harry Pardoe
Buchanan
Helen Tarbet +44 7872 604 453
Simon Compton +44 7979 497 324
Notes to Editors
About i(x) Net Zero PLC
i(x) Net Zero PLC is an AIM quoted investing company that seeks
to provides its shareholders with the opportunity to create long-
term capital growth with positive, scalable, measurable and
sustainable impact on the environment and on the communities it
serves.
In accordance with its belief that the world's biggest problems
are also the biggest market opportunities, i(x) Net Zero focuses on
two critical areas in which it aims to make a positive impact: (i)
Energy Transition and (ii) Sustainability in the Built
Environment.
The Company uses a multi-strategy investment approach, providing
the companies in which it invests with the expertise and catalytic
capital to help them grow. To date, i(x) Net Zero has invested in
biofuels, direct air capture (carbon removal), renewable energy,
sustainable workforce housing and net zero construction technology
.
i(x) Net Zero is a signatory to the UN Principles for
Responsible Investing.
The Company has received the London Stock Exchange's Green
Economy Mark.
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