Gore Street Energy Storage Fund is proposing a new issue of ordinary shares at 102 pence per share to raise further capital for its development pipeline of 1.3GW.
They will be issued as part of a non-pre-emptive placing pursuant to the company’s Placing Programme, with up to 190 million new shares available.
The issue price is a discount of approximately 6.2% to the closing middle market share price as of 1 April 2021 of 108.7 pence per share. It represents a premium of 2.4% on the last reported NAV of 99.6 pence, seen at the end of 2020.
The placing is open with immediate effect, with proceeds going towards 1.3GW of accretive opportunities and near-term potential competition of an acquisition of an 80MW project, which is expected over the coming weeks.
Additionally, the funds raised will help accelerate the development of Gore Street’s existing portfolio, including its assets in the Republic of Ireland, which it is expanding from 30MW to 90MW.
In December, the company completed a £60 million equity raise, which has now been fully allocated across its existing portfolio of assets. The majority of this was committed equally between its Northern Ireland and Republic of Ireland assets.
This includes the fund’s two Northern Ireland batteries that were completed in March, taking its operational portfolio up to 210MW.
Gore Street’s share placing is to be managed and conducted by its joint corporate brokers and joint bookrunners Shore Capital and J.P. Morgan Securities. Those investors wishing to apply for shares have been advised to contact either company.
Additionally, retail investors will be able to participate via PrimaryBid, with a further announcement expected from the company giving details shortly.
Alex O'Cinneide, CEO of Gore Street Capital, said he was delighted to announce both the placing and the retail offer to progress the company’s “ambitious growth plan” on the back of the successful deployment of December's raise.
"This Subsequent Placing under the Placing Programme has been launched at a critical time for the development of the energy storage asset class, with increasing international regulatory support most recently with the new Dynamic Containment revenue stream that the company is capitalising on for its operational GB portfolio.”
Gore Street expects the latest time for receipt of placing commitments to be 22 April, with the result then announced on 23 April. Admission will then become effective on 27 April, when the dealings of the shares on the London Stock Exchange’s main market commence.