Atlantis launches fresh bond issue
Developer to accelerate Uskmouth coal plant conversion
Atlantis Resources has launched a five-year bond expected to raise up to £5m to expedite the development of its project pipeline.
The Edinburgh outfit will use the cash injection to convert Simec Energy’s 363MW mothballed Uskmouth coal power plant in south Wales and develop the proposed 160MW Wyre tidal barrage in Lancashire.
The bond to be issued through Abundance Investment will also be used to repay “some more expensive debt” and to provide general working capital for the Atlantis group, the company said.
The bond issue expected to close by the end of March follows Abundance’s fundraise for Atlantis Ocean Energy last June and is offered on similar terms paying 8% a year.
Share trading in Atlantis remains suspended pending shareholder approval of a reverse takeover deal involving GFG Alliance.
Atlantis will acquire GFG subsidiary Simec Energy’s Uskmouth and in return Simec will own a 49.99% share of Atlantis, which will be renamed Simec Atlantis Energy.
“As we embark on our transformational deal with Simec and the GFG Alliance to create a global, diversified renewable energy platform, this bond offer represents a chance for ordinary investors to help Atlantis to grow and share in our future financial success,” said Atlantis chief executive Tim Cornelius.
“These bonds will help us achieve our ambition of becoming one of the largest and most diversified renewable energy companies on the London Stock Exchange.”
Image: MeyGen 1A tidal array (Atlantis)