Gasol plc Investment in secured Loan Notes (2824H)

TIDMGAS

RNS Number : 2824H

Gasol plc

16 May 2014

Gasol plc

('Gasol' or the 'Company')

(AIM: GAS)

Gasol Investment in secured Loan Notes

The Board of Gasol announces that it has agreed to invest in up to GBP500,000 of secured Loan Notes to be issued by PowerPerfector Group Limited ("PP").

An initial investment of GBP200,000 in the Loan Notes will be followed by a further investment of GBP300,000, subject to PP entering into an invoice discounting facility within the next three months. The Loan Notes pay an interest rate of 8% per annum, have a term of three years and are secured against the assets of PP and its subsidiaries. Gasol will initially be granted 1,071,500 warrants over ordinary shares in PP, and will receive a further 1,607,100 warrants following the further investment in the Loan Notes. Gasol will be entitled to appoint a Director to the Board of PP. If all warrants were to be exercised, Gasol would own approximately 9.8% of PP on a fully diluted basis.

Gasol's investment is part of a GBP1.3 million refinancing of PP through the issuance of the Loan Notes. PP supplies voltage optimization products to commercial customers. These products regulate and optimize the incoming electricity supply to a building, thereby allowing the customer's electrical equipment to operate more efficiently and save them money. PP's products have already been installed in many locations in the UK, including those of blue chip customers and public organisations.

Alan Buxton, Chief Operating Officer at Gasol, said: "We believe that this Loan Note investment and the associated warrants will provide us with an excellent opportunity to benefit from PowerPerfector's development and growth going forward."

Angus Robertson, Founder and CEO of powerPerfector, said: "We are delighted to have Gasol invest in the business and it demonstrates the breath of their vision that, as an energy provider, they recognise the value of paralleling energy efficiency with their core business. This is a highly responsible business strategy and we look forward to growing together."

- Ends -

For further information, please contact:

 
 Gasol plc 
  Alan Buxton, Chief Operating 
  Officer                         [phone] 
  www.gasolplc.com                 3300 
 Panmure Gordon (UK) Limited 
  Dominic Morley (Corporate 
  Finance)                        [phone] 
  Callum Stewart (Corporate        2500 
  Finance) 
  Adam Pollock (Corporate 
  Broking) 
 
  Yellow Jersey PR Limited         [phone] 
  Dominic Barretto                 739 
 

Notes to Editors:

About Gasol plc

Gasol plc is an AIM listed energy development company focusing on gas constrained nations. Power stations in West Africa currently operate predominantly on liquid fuels such as diesel, light crude and jet fuel, but many of these plants are also capable of using gas. Gasol will initially supply these customers with gas from regasified Liquefied Natural Gas ("LNG"), which can provide significant cost savings in the order of 20 to 30 per cent. This involves the delivery of LNG to leased Floating Storage and Regasification Facilities which will be positioned in Cotonou harbour, Benin and will supply the regasified LNG into the West African Gas Pipeline.

The West African Gas Pipeline is a 678km gas pipeline involving an investment of over US$1 billion, built to transport gas from Nigeria to Benin, Togo and Ghana which has been operational since March 2011, but today operates at significantly less than full capacity. Once there is sufficient regional demand for gas, Gasol aims to develop captive gas reserves in offshore Nigeria and will supply this gas through the West African Gas Pipeline. This pipeline gas will be cheaper and therefore displace the LNG derived gas, resulting in further savings for customers.

As part of a consortium called Electrogas Malta, Gasol has also been awarded a LNG-to-power project by Malta's state power utility Enemalta, as the country aims to lower its energy costs. Electrogas Malta is a consortium made up of Gasol, SOCAR Trading SA, GEM Holdings Ltd and Siemens Project Ventures, the equity financial arm of Siemens Financial Services.

Gasol's shares have been listed on London Stock Exchange's AIM since 2005 with the ticker code "GAS". Further information on the Company is available at www.gasolplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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