Comment on Share Price

RNS Number : 3645X

Rurelec PLC

27 August 2020

 

Rurelec PLC

("Rurelec" or the "Company")

Comment on Share Price

The Directors of the Company note the recent movement in the Company's share price and confirm that they know of no reason for the share price movement.

The Directors of the Company would also like to clarify the position with regards to the previously announced Capital Reorganisation, Share Premium Reduction and Capital Reduction (see announcements of 1 June 2020, 4 August 2020, 14 August 2020 and 26 August 2020) (together the "Capital Restructure").

The purpose of the Capital Restructure is to create the capacity to pay dividends in the future, dependent upon the availability of future cash flows and the Company's working capital requirements at the time.

In addition, as previously announced, the year 2019 saw a marked improvement in the Group's liquidity position and the improvements in the performance of the Argentinian asset. The relationship with the Company's joint venture partner, have also been encouraging.  However, uncertainty around the timing of any future material asset disposals together with the effect of the current poor state of the Argentinian economy and the uncertainty around the renegotiation of the Resolution 220 PPA later this year do cast a shadow over future performance and therefore there cannot be any guarantee as to when, or if, the Company will have the funds to make a dividend payment or undertake a share buy-back in the future.

For further information please contact:

Rurelec PLC	W H Ireland (Nomad & Broker)
Simon Morris, Director Andy Coveney, Director	Katy Mitchell Lydia Zychowska
Tel: [phone]	Tel: [phone]

 

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