Molecular Energies plans spin-out and IPO of alternative energies division
LONDON, UK: Molecular Energies PLC (AIM: MEN), an international energy company, has announced its intention to spin out and conduct an initial public offering (IPO) for its alternative energies division, Green House Capital.
The company believes that by separating Green House, it will attract new energy-focused investors and command a valuation that may not be fully recognized as part of the Molecular Group.
Key Highlights:
- Green House to Spin Out and IPO on AIM: Molecular Energies PLC plans to spin out its Green House Capital division and launch an IPO on the AIM market. The management is confident that Green House’s progress and potential will be appealing to investors.
- Advanced Discussions and Increased Stake in Dual Fuel Limited (DFL): Green House is in advanced negotiations to raise its stake in Dual Fuel Limited from 50% to 100%. Green House sees DFL as an important transitional step towards decarbonizing heavy transport by retrofitting existing heavy goods vehicles to run on a mix of hydrogen and diesel. Engineering is progressing, and trials are expected to begin in early 2024, with the first revenues targeted for the same year.
- Aton 6 (A6) Partnerships and Acquisitions: A6, a subsidiary of Molecular Energies PLC, has signed a Framework Co-operation Agreement with a subsidiary of Marex, a diversified global financial service platform. The agreement covers co-operation in all aspects of A6’s carbon trading business, including advice, support, and trading of carbon credits. A6 has also signed a forward purchase agreement to acquire the carbon credits generated by the DFL business and is engaged in advanced discussions to acquire an existing app-based trading platform for the acquired carbon credits. Revenue generation from the app-based trading platform is targeted to begin in 2024.
- Framework Co-Operation Agreement with AECOM: Green House has entered into a Framework Co-Operation Agreement with AECOM, a Fortune-500 company, to become its Owner’s Engineer of choice for various projects. This collaboration will support the development and execution of Green House’s projects.
Peter Levine, Chairman of Molecular Energies PLC, expressed enthusiasm for Green House’s future, highlighting the transformative nature of the upcoming months. He emphasized the importance of revenue generation and the monetization of value in considering opportunities. Levine also mentioned the advantage of accessing expertise from within and outside the Molecular Group, as well as the anticipated value delivery for shareholders through the IPO.
The hydrocarbon division of Molecular Energies PLC will continue to operate as outlined in the recently issued Annual Report and Accounts 2022.
Molecular Energies PLC looks forward to providing further updates throughout the summer regarding Green House’s progress.
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