Genex Power Limited has signed a share subscription agreement (SSA) with Electric Power Development Co Ltd, trading as J-POWER, for a conditional investment of up to AUD$25 million (US$17.5 million).
The investment will be made by way of a subscription for ordinary shares in Genex, with the proceeds to be principally applied toward Genex’s equity funding component for construction of the 250-MW Kidston Pumped Storage Hydro Project (K2-Hydro).
“Genex is pleased to announce this exciting partnership with J-POWER,” said James Harding, chief executive officer of Genex. “J-POWER are a global expert in hydroelectric projects, including pumped storage, and as such they bring significant experience and technical expertise to Genex to support in the delivery of the K2-Hydro project. The investment by J-POWER is an important milestone, as it secures the funding required for Genex’s equity component for K2-Hydro, which is being developed in a 50:50 partnership with EnergyAustralia.”
Key terms of the SSA are:
- Subscription to occur at the higher of the five-day volume weighted average price of Genex shares at financial close, or the date that is five days following financial close. This is subject to a subscription price cap that would result in a minimum investment of 15% of Genex’s enlarged share capital and subject to a maximum of 19.99% of Genex’s enlarged share capital;
- Appointment of a J-POWER nominee director to the Board of Genex;
- Subject to several conditions precedent, including approval of Genex shareholders at an extraordinary general meeting, execution of a facility agreement to be entered into between the K2-Hydro project entity and the Northern Australia Infrastructure Facility, and financial close for K2-Hydro occurring prior to December 31, 2019.
As a further condition precedent under the SSA, Genex has agreed to enter into a technical services agreement with J-POWER wherein J-POWER will provide certain professional technical advisory services to Genex in relation to the development and operational stages of K2-Hydro.
in April 2019.
J-POWER is a Japanese public utility company with a portfolio of hydroelectric, coal-fired power and wind power generation assets in Japan totaling 17.9 GW.
Genex Power is focused on innovative clean energy generation and electricity storage solutions that deliver attractive commercial returns for shareholders. The company has a development pipeline of up to 770 MW of renewable energy generation and storage projects, underpinned by the Kidston Renewable Energy Hub in far-north Queensland. The Kidston Hub is comprised of the operating 50-MW Stage 1 Solar Project (KS1), K2-Hydro and the multi-staged integrated Solar Project of up to 270 MW (K2-Solar) under development, and the Kidston Stage 3 Wind Project of up to 150 MW under feasibility.