Kedco, the UK and Ireland focused renewable energy group, on Friday completed the acquisition of Reforce Energy Limited. Through the transaction the outfit will gain an active pipeline of over 60 projects, with a potential capacity of in excess of 40MW, at various stages of development, consisting of small-scale renewable projects across various technologies. As well, Steve Dalton, a director of Reforce, will join the Board of Kedco as an Executive Director.
Mr Dalton was previously head of RBS Ulster Bank’s project finance business in Ireland with specific responsibility for the financing of renewable energy projects. For over six years he led the financing of 35 renewable energy projects with a combined capacity in excess of 500MWs. He was a founder and director of Reforce Energy Limited and Mexican Renewable Energy Limited, both renewable energy development companies.
Consideration for the Acquisition will initially be satisfied via the issue of 139,386,678 ordinary shares in Kedco to Reforce. A further issue of 59,737,148 Ordinary Shares to Reforce will take place when Reforce obtains eight planning permissions for renewable energy projects from its project pipeline.
The shareholders of Reforce have agreed to an orderly market arrangement in relation to the Ordinary Shares, which they will acquire for a period of twelve months from the date of issue.
In the period running from February 18th 2011 to December 31st 2011, Reforce incurred a loss before tax of EUR48,260. As of December 31st 2011, Reforce’s net assets, which are recorded at their net book value for accounting purposes, totalled EUR400,343.
Kedco’s consolidated financial statements for the year ending June 30th 2013 will include Reforce’s financial performance from the date of completion of the Acquisition.
Gerry Madden, the Chief Execuitve Officer (CEO) of Kedco, commented: ‘(…) We feel strongly that bringing together both companies’ experience in the renewable energy sector is an ideal match and enhances our aim of becoming one of the UK and Ireland’s largest independent renewable energy companies.’
Further to the above information, on December 20th 2012 the Board of Kedco agreed to grant warrants to Gerry Madden CEO of the Company, over a total of 30,000,000 Ordinary Shares. The purpose is to incentivise the CEO during a key phase in the development of the company. The Management Warrants are exercisable by Mr Madden at a price of £0.016 per ordinary share and are exercisable at any time prior to the third anniversary of their issue.