July 2005 -  Intelligent Energy Secures Equity Financing; Dickie Walker Marine and Intelligent Energy Amend Acquisition Agreement

Situation

• In February 2005 Intelligent Energy plc (“IE”) agreed to a reverse takeover by Dickie Walker Marine to secure IE a NASDAQ listing.
• The ongoing operations of IE were dependent on securing additional funding prior to the listing occurring.

Approach

• ARC Associates (“ARC”) worked with the directors of IE in deciding the best method of raising funds and approached several potential investors.
• Following several meetings, Evolution Placements Corporation (“EPC”), an existing shareholder in IE which invests in potential high growth ventures in the innovation and technology sectors, expressed interest.
• ARC assisted with negotiating the financing for IE and provided a Rule 3 opinion and assistance with the UK Takeover Panel.

Transaction

• EPC will initially invest in IE in two tranches, the first immediately and the second on admission to AIM.
• EPC will also be granted options over 10 million shares generating an additional £8m of capital to IE exercisable up to five years from the date the AIM admission becoming effective.
• Further funds would be raised if the other shareholders who have participation rights take up their rights.
• The transaction was announced on 14th July 2005