Business
Joint Venture
Joint Venture.
About this update from Quantum Data Energy Plc
[{"type":"text","content":"\n\nMast Energy Developments PLC\n(Incorporated in England and Wales)\n(Registration Number: 12886458)\nShare code on the LSE: MAST\nISIN: GB00BMBSCV12\n('MED' or 'the Company')\n \nDated: 12 July 2023\n \nMast Energy Developments PLC ('MED' or 'the Company')\n \nMED Announces Execution of Definitive and Binding Joint Venture Agreement\n \nMast Energy Developments PLC, the UK-based multi-asset owner, developer, and operator in the rapidly growing flexible power market, is pleased to announce that further to its previous announcement dated 18 May 2023, it has finalised and entered into a first definitive and binding Joint Venture Agreement ('JVA') with an institutional investor-led consortium (the 'Institutional Investor'), led by Seira Capital Ltd ('Seira').\n \nUnder the JVA, the Institutional Investor will inject all required investment capital into the Joint Venture ('JV'), with an initial expected total investment value of c. £5.9m, with no funding contribution required from MED.\n \nThe JVA also commits both parties , as set out in MED's announcement dated 18 May 2023, to promptly finalise terms on a second joint venture which would increase the envisaged total investment value to c. £31m, with a total portfolio of low-carbon flexible gas generation peaker plants with a total combined generation output of up to c. 33 MW, to be developed and/or acquired, constructed and in production and income generating under the two joint ventures ('Secondary JVA'). Such terms are subject to a Reverse-Takeover derogation clearance from the FCA, and MED is not bound to enter into any agreement prior to such clearance having been obtained. The derogation clearance has been granted in-principle by the FCA, pending their guidance publication expected shortly.\n \nAn overview of the key highlights and terms of the JVA and Secondary JVA are provided below.\n \nJVA Key Highlights\n \nThe key terms of the JV agreement comprise the following:\n \n· Institutional Investor will inject all required investment capital into the JV with an initial expected total investment value of c. £5.9m, rising to potentially c. £31m upon completion of the Secondary JVA, (including repayment of MED past costs as detailed below), with no funding contribution required from MED.\n· &nbs...