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Leaf Clean Energy Co (LEAF)

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Monday 29 July, 2019

Leaf Clean Energy Co

Redemption and Invenergy Update

RNS Number : 9485G
Leaf Clean Energy Company
29 July 2019
 

This announcement contains inside information defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

 

29 July 2019

 

Leaf Clean Energy Company

Redemption Announcement and Invenergy Update

In accordance with the Special Resolution passed by the requisite majority at the Extraordinary General Meeting held on 1 July 2014 and the powers therein granted to the Board, the Company will return approximately £53.1 million to Shareholders, equivalent to 101.00 pence per Share by way of a compulsory redemption of a proportion of all Shareholders' holdings of Shares (the "Redemption").

 

Words and expressions defined in the Circular posted to shareholders on 11 June 2014 (the "Circular") shall, save where the context requires otherwise, have the same meaning where they are used in this announcement. The Circular is available to view on the Company's website at www.leafcleanenergy.com/media-relations/download-centre

 

The Company expects to announce a detailed timetable of principal events in connection with the Redemption later this week.

 

The Company's current cash balance is £83.6 million, following receipt of US$107.2 million from Invenergy in relation to the Delaware Court of Chancery's ("Chancery Court") Final Order and Judgement, as previously announced on 27 June 2019. Invenergy has appealed the prejudgment interest award of US$30.0 million. Accordingly, the Company is reserving an equivalent cash amount to the interest award together with its best estimate of further costs and potential liabilities until final resolution of Invenergy's appeal filed in the Delaware Supreme Court ("Supreme Court"), in case such sums are payable. We believe that the appeals process will be concluded during September 2019. As a result, the amount available for distribution is £53.1 million.

 

Following the Redemption, and net of the aforementioned payments and reserves, the Company will have £1.9 million in uncommitted cash.

 

 

Update Regarding Invenergy's Appeal of the Final Order and Judgment Issued by the Chancery Court 

 

On July 9, 2019, Invenergy filed a notice of appeal with the Supreme Court to contest the Final Order and Judgement issued by the Chancery Court on June 14, 2019. On July 10, 2019, Leaf filed a motion to expedite with the Supreme Court in order to accelerate the appeal proceedings.  In its opposition to the motion, Invenergy clarified that it is only appealing the Chancery Court's award of prejudgment interest to Leaf.  On July 24, 2019, the Supreme Court issued an order granting Leaf's motion to expedite the aforementioned proceedings.  On July 25, 2019, the Supreme Court issued a notice stating the Supreme Court will consider the appeal, without oral argument, on September 18, 2019.  As a consequence, the Leaf Board anticipates the Supreme Court will issue a written decision soon after considering the appeal but no later than the end of 2019.

 

 

 

For further information please contact:

 

Mark Lerdal                                                                                +1 (415) 264-5096

Leaf Clean Energy Company

 

Nicholas Wells/Callum Davidson                                            +44 (0) 207 397 8980

Cenkos Securities plc

 

 

 

 


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