Genex Power has announced it has signed a Share Subscription Agreement with Electric Power Development Co Ltd, operating as J-Power.
The agreement provides for a conditional investment of up to $25m by way of a subscription for ordinary shares in Genex, with the proceeds to be principally applied towards Genex’s equity funding component for the construction of the Kidston Pumped Storage Hydro Project (K2-Hydro).
Key terms of the SSA are as follows:
- Investment of up to a maximum of $25 million
- Subscription to occur at the higher of the five-day volume weighted average price (VWAP) of Genex shares at financial close, or the date five days following financial close.
- Provides for the appointment of a J-Power nominee director to the Board of Genex
- The agreement is subject to several conditions precedent.
Related article:AEMC: Energy debate suffering from reactive policy
Genex has also agreed to enter into a Technical Services Agreement (TSA) with J-Power wherein J-Power will provide certain professional technical advisory services to Genex in relation to the development of operational strategies of K2-Hydro.
The agreement is subject to the approval of Genex shareholders at an EGM. Full details of the SSA and TSA will be outlined in an Explanatory Memorandum to accompany a Notice of EGM to be sent to shareholders in the very near future.
CEO of Genex James Harding says the company is pleased to announce the partnership, with J-Power being a global expert in hydroelectric projects including pumped storage.
Related article:Mackay electricity hub gets $24 million upgrade
“… as such they bring significant experience and technical expertise to Genex to support in the delivery of the K2-Hydro project,” Mr Harding says.
“The investment by J-Power is an important milestone as it secures funding required for Genex’s equity component of K2-Hydro, which is being developed in a 50:50 partnership with EnergyAustralia.
“We are continuing to progress the final stages of the project financing with all relevant stakeholders, with financial close remaining on track for mid-2019.”