Situation
• In July 2005, Evolution Placements Corporation (“EPC”) invested one of two agreed tranches in Intelligent Energy plc (“IE”), the second being conditional on an AiM listing.
• The ongoing operations of IE were dependent on securing additional funding prior to an AiM listing occurring.
Approach
• ARC Associates (“ARC”) worked with the directors of IE in deciding the best method of raising funds.
• Following several meetings with EPC, ARC negotiated for the second investment tranche to come forward prior to an AiM listing.
• ARC also met with other shareholders in IE who had pre-existing anti-dilution rights to co-ordinate further investment into IE.
• ARC assisted with structuring and negotiating the financing for IE from the shareholders and acted as financial adviser in relation to the requirements of the Takeover Panel.
Transaction
• EPC and other shareholders in IE will invest £11.3m into the company,
• EPC and other shareholders will also be granted options over 19 million shares generating an additional £15.2m of capital to IE exercisable up to five years from the date the AiM admission becoming effective.
• The placing was divided into two tranches, the first in Octover 2005 and the final in January 2006.