24
October 2024
Alkemy Capital Investments
Plc
ABG Sundal Collier to lead
US$25 million Convertible Bond Financing
Alkemy Capital Investments
plc ("Alkemy") (LSE: ALK) (JV2:FRA) is
pleased to provide the following update from its wholly-owned
subsidiary Tees Valley Lithium ("TVL").
HIGHLIGHTS
·
ABG Sundal Collier ASA ("ABGSC") will be engaged
as TVL's exclusive financial advisor for a proposed US$25 million
Convertible Bond and equity linked financing.
·
The financing may be carried out as one or several
private placements of a Convertible Bond or an equity issue in the
form of a private placement, rights issue, or combinations
thereof.
·
It is proposed that the Convertible Bond will have
a mandatory conversion mechanism into ordinary shares in TVL upon a
liquidity event such as an IPO or a trade sale.
·
The Convertible Bond is assumed to have interest
payment in kind and will convert at a discount to the share price
following the relevant liquidity event.
Chairman Paul Atherley commented:
"This partnership with ABGSC marks a major step forward for
Tees Valley Lithium, as we move towards delivering Europe's largest
independent lithium hydroxide refinery. Securing this funding will
allow us to complete the vital FEED stage and progress towards
unlocking the full potential of this strategically important
project. The future looks extremely bright for TVL as we work to
meet the growing demand for battery-grade lithium in
Europe."
TVL is delighted to announce
the appointment of leading European financial institution ABG
Sundal Collier to arrange the funding for the completion of
Front-End Engineering Design (FEED) for its proposed lithium
refinery in Teesside.
The proposed US$25 million funding
will be secured at the TVL level, positioning TVL to advance the
development of the refinery and to reach a final investment
decision on its US$300 million financing package. This financing
will be composed of a blend of bonds, government grants and
institutional equity.
In an exciting development for the
company, the funding is expected to be structed as a convertible
bond, with the potential for an Initial Public Offering (IPO) of
TVL in 2025. This funding pathway not only supports TVL's immediate
objectives but also positions the company for long-term growth in
the rapidly expanding lithium market.
ABGSC has an outstanding track
record in the natural resources sector, raising over US$11 billion
in bond markets since 2018, further strengthening TVL's pathway
towards becoming a key player in the UK and Europe's green energy
transition.
Further information
For further information, please
visit Alkemy's website: www.alkemycapital.co.uk or
TVL's website www.teesvalleylithium.co.uk.
-Ends-