Plutus PowerGen Plc / Ticker: PPG / Index: AIM

11 December 2014

Plutus PowerGen plc ('PPG' or 'the Company')

Enters into further agreement with Rockpool Investments LLP for a £3.4 million Share issue under the Enterprise Investment Scheme

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, announces that its wholly owned subsidiary, Plutus Energy Ltd ('Plutus Energy'), has signed a proposal from Rockpool Investments LLP ('Rockpool') for a £3.4 million equity fund raising for the construction of its second 20MW of flexible power generation. 

The equity raise undertaken by Rockpool with Flexible Generation Limited, Plutus Energy's second Special Purpose Vehicle ('SPV') will be achieved via a share issue under the Enterprise Investment Scheme ('EIS') on the same terms as Attune Energy 1 Limited ('Attune Energy 1'), an SPV established to fund the Company's first 20MW of flexible power generation (see press release 17 November 2014).  The terms are outlined in the Company's Admission Document. 

The total capital expenditure, working capital, fees and contingency for PPG's second 20MW of flexible power generation is expected to be £5.4 million.  Following the receipt of the £3.4 million funding from Rockpool, the balance is intended to be covered by an asset finance facility.  Plutus Energy Limited will own 45% of the SPV and will have a right to 45% of the value of the SPV. As an associated company, PPG will be able to consolidate 45% of its share of the profit and loss account of the SPV.

PPG CEO Phil Stephens said, "PPG is delighted to conclude a further proposal for investment of £3.4 million into one of our SPV's from Rockpool.  This strong relationship is testament to Rockpool's confidence in our business model to construct flexible energy generation sites in the UK and we look forward to continuing our relationship with them into 2015 and beyond. 

"Excitingly this news follows close on the heels of us securing land positions for the construction of a number a number of individual 20MW flexible generation facilities in the South West of England, and offers for 140MW to connect to the National Grid at locations in the south of England.  With this funding now secured, the structure of which is in line with our strategy to limit dilution to the parent PLC, we have met a crucial milestone towards the delivery of our second 20MW project."

Andrew Green LLP, Partner of Rockpool, commented, "Rockpool is pleased to continue its association with Plutus Energy and believes that the investment proposals for Attune Energy 1 and Flexible Generation Limited represent an excellent investment opportunity for us and our investors."

**ENDS**

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Notes to Editors

Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years.

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.