Increase in Ownership in Smart Metering Business

RNS Number : 0275Q

eEnergy Group PLC

25 October 2021

 

25 October 2021

eEnergy Group plc

("eEnergy" or "the Group")

Increase in Ownership in Smart Metering Analytics Business

Issue of Equity and Options

Further to the announcement on 22 June 2021, eEnergy (AIM: EAAS), a leading Energy Efficiency-as-a-Service and Energy Management-as-a-Service business in the UK and Ireland, is pleased to announce that eEnergy Insights Ltd ("EIL"), the entity holding the Group's MY ZeERO smart metering and analytics platform, has completed development of its next generation of intelligent smart meters, which are now ready for commercial launch. This new generation of meters offers enhanced accuracy at a lower price point than the previous generation of meters. This opens up additional use-cases, including shared savings contracts, for the Group's customers.

Smart Meter Order and Exercise of Warrants

The Group has placed an order for a number of meters which are expected to be rolled out to customers in the coming months. As a result, the minimum cumulative order required to exercise the nominal-cost warrants issued to the Group as part of the various agreements entered into with the other existing shareholders of EIL (the "Warrants") has been met. As a result of exercising the Warrants, the Group has increased its shareholding in EIL from 37.5% to 51%. As previously announced, the agreements entered into in June 2021 provide for the Group potentially to increase its interest in EIL to 100% over time.

Issue of Shares and Issue of Options

Further, the agreements entered into in June 2021 contained provisions, inter alia, to align the interests of certain EIL investors through the conversion of £138,000 in EIL loan notes into ordinary shares in eEnergy ("Ordinary Shares"). In addition, the Group has issued 2,000,000 options over Ordinary Shares to the founding members of the EIL management team.

The £138,000 of EIL loan notes have been converted into 852,904 Ordinary Shares at a price of 16.18p (being the 30 day VWAP to 13 October 2021). Application has been made to the London Stock Exchange for the 852,904 New Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will take place at 8.00 a.m. on 26 October 2021.

In addition, the two founding members of the EIL management team have today been granted a total of 2,000,000 options over Ordinary Shares with an exercise price of 16.18p (being the 30 day VWAP to 13 October 2021, the date the performance criteria for the meters was satisfied).

Total Voting Rights

On Admission, the issued share capital of the Company will comprise 345,142,243 Ordinary Shares each with one voting right ("Ordinary Shares"). The Company does not hold any Ordinary Shares in treasury. Therefore, from Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Harvey Sinclair, CEO, eEnergy, commented:

"The launch of the next generation of intelligent smart meters by MY ZeERO is an important step in the Group's strategic development. By embedding the monitoring and analytics of the MY ZeERO platform into our energy efficiency solutions, we can offer measured savings contracts to Energy Efficiency clients using the certified International Performance Measurement and Verification Protocol (IPMVP) methodology to evidence the savings delivered by efficiency measures. At the same time, the proprietary monitoring and analytics platform enables a more customer-aligned proposition to our Energy Management clients via a simple subscription model.

We strongly believe this will differentiate our solutions from those of competitors in the market and are excited by the early interest shown by both existing and potential customers."

For further information, please visit www.eenergyplc.com or contact:

eEnergy Group plc	Tel: [phone]
Harvey Sinclair, Chief Executive Officer Ric Williams, Chief Financial Officer	[e-mail]
Singer Capital Markets (Nominated Adviser and Joint Broker)	Tel: [phone]
Justin McKeegan, Asha Chotai (Corporate Finance) Tom Salvesen (Corporate Broking)
Turner Pope Investments (Joint Broker)	Tel: [phone]
Andy Thacker, James Pope	[e-mail]
Tavistock	Tel: [phone]
Jos Simson, Simon Hudson, Katie Hopkins	[e-mail]

About eEnergy Group plc

eEnergy Group plc is an integrated energy services company, enabling organisations to transition to 'Net Zero' through "Energy-as-a-Service".  The Group offers:

· Energy Management-as-a-Service; providing energy measurement, monitoring and analytics on top of core "Zero Carbon" procurement services;

· Energy Efficiency-as-a-Service; zero upfront capital, energy reduction solutions through measured savings contracts including its LED businesses; and

· Enhanced customer value proposition through data gathered and analysed with its proprietary MY ZeERO platform.

eEnergy was admitted to AIM in January 2020 with a strategy to use its market leading eLight "Light-as-a-Service"  business as the foundation to expand eEnergy as a broader energy services company via a 'buy and build' strategy. The Group has completed four transactions since admission, building a Top 5 energy management business in the UK and acquiring proprietary smart metering and analytics capability through the investment in MY ZeERO. The Board's strategy continues to be to build a broader energy services company through acquisition with a particular focus on energy efficiency related capabilities and technologies. The market in the EU for energy efficiency services was approximately €25 billion in 2017 and is expected to double by 2025.

eEnergy has been awarded The Green Economy Mark by the London Stock Exchange, which recognises a company's work on sustainability.

About EIL

EIL is a specialist smart metering measurement equipment and analytics business that was formed to acquire certain trade assets of Measure My Energy Limited from its administrators on 19 April 2021. EIL has been developing its next generation proprietary smart "behind the meter" hardware and software.

Energy measurement and monitoring is a key growth pillar across both eEnergy's Energy Efficiency-as-a-Service and Energy Management-as-a-Service platforms, enabling delivery of a more customer-aligned service proposition via a simple subscription model in Energy Management and of measured share of savings contracts in Energy-as-a-Service.  In addition, EIL provides an opportunity to use key data insights captured by the platform to enable eEnergy to deliver additional energy conservation measures through the integration of the Internet of Things (IOT) and smart controls.  EIL's units will be rolled out to customers of all Group subsidiaries over the coming months.

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