TIDMIX.
RNS Number : 8866W
i(x) Net Zero PLC
20 April 2023
The information contained within this Announcement is deemed by
i(x) Net Zero plc to constitute inside information as stipulated
under the Market Abuse Regulation (EU) No. 596/2014 as it forms
part of UK law by virtue of the European Union (Withdrawal) Act
2018 ("MAR").
20 April 2023
i(x) Net Zero PLC
("i(x) Net Zero" or the "Company")
Strategic Update, Board Changes, New Loan Facility and
Appointment of Nomad and Broker
i(x) Net Zero PLC (AIM: IX.), the investing company which
focuses on Energy Transition and Sustainability in the Built
Environment, is pleased to announce a strategic update, management
changes and a new loan facility, creating a strong platform from
which to drive shareholder value.
Strategy and Operations
i(x) Net Zero's mission is to create long term capital growth by
investing in companies that focus on Energy Transition and
Sustainability in the Built Environment. Following a period of
strategic and operational review, the Board of Directors have
determined that in order to meet that objective, management will
focus firmly on growing the Net Asset Value ("NAV") of the
Company's investments. This will be achieved by identifying and
seeking to execute profitable investment realisations from the
existing investment companies in the short term and by sourcing
high growth investment opportunities in accordance with its
Investing Policy. The Board of Directors have set ambitious NAV
targets for the executive management team, in order to drive growth
in the business and diversify the Company's portfolio of
investments.
The Company will accelerate its pursuit of this strategy with a
more streamlined approach to operations. The Directors have
introduced a near term target of reducing operating expenditure to
2% of NAV, down more than 50% from the 2022 operating
expenditure.
Strengthened Executive Team
The Company is pleased to announce the appointment of Jonathan
Carpenter Stearns as CFO, conditional on regulatory approval.
Jonathan is expected to join the Board as an Executive Director of
the Company. Mr. Stearns brings over 40 years of C-suite level
experience as CFO, CEO and CIO in the operating management of
emerging growth companies. In addition, Mr. Stearns has significant
experience in portfolio management, complex financial structuring
and strategic consulting with both public and private companies
located in the US and Europe. Previously Mr. Stearns was a Managing
Director with AIG in its private capital group, and started his
career at JP Morgan.
The proposed appointment of Jonathan Stearns as CFO follows the
appointment, in January 2023, of Pär Lindström, as Chief Executive
Officer. Pär has over 25 years' investment experience, M&A
experience and business development expertise through a career
focused on venture capital, growth capital and private equity
investments in the U.S., Europe and emerging markets.
The Board of i(x) Net Zero believe the new Executive team will
be well placed to identify new opportunities for value and to
secure profitable investment realisations within the existing
portfolio.
Dmitri Tsvetkov, the former CFO of the Group, is stepping down
from the Board with immediate effect but will continue in a senior
management role as COO and Group Director of Finance.
New Loan Facility
The Company is pleased to announce that its wholly owned
subsidiary, i(X) investments LLC has entered into a new secured
$7.5 million 2 year term loan facility with European Depositary
Bank S.A. ("EDB") ("Loan"). The Loan, once drawn, bears interest at
10.5% coupon (subject to periodic change in line with EDB's USD
Base rate) and which is payable quarterly. The Loan can be utilised
for the purposes of the financing of investments and general
working capital purposes. The Loan is guaranteed by the
Company.
i(X) Investments LLC has agreed to pay an arrangement fee equal
to 2% of the amount of the facility and a commitment fee of 1.75%
per annum on any undrawn funds, payable quarterly in arrears.
Drawdown of the Loan is conditional upon there being no event of
default and other customary provisions including delivery of
documents. The Loan is repayable together with default interest in
the event of default which, inter alia, includes a change of
control and a reduction of aggregate NAV of the Company below $50
million.
The Loan is secured by a pledge granted by the Company and its
nominee of the shares held by it including those in i(X)
Investments LLC and all other proceeds and property and assets
owned by it. In addition, as part of the Facility Agreement, i(X)
Investments LLC will pledge $4.0 million as a security at a deposit
account with EDB. The Company will be able to invest this security
deposit in certain money markets funds and other financial
instruments and generate a return on deposited funds (currently
expected to be approximately 4-5% per annum) thereby mitigating the
interest payable. In addition, i (X) Investments LLC has undertaken
to maintain a minimum cash balance in an operating account with
amount varying depending on the remaining time to facility maturity
but being zero if draw downs are below $4 million.
In connection with the facility, i(X) Investments LLC has also
agreed to give customary undertakings, warranties and indemnities
to the Lender, the Agent and Security Agent including as to tax and
undertkaings not to undertake certain corporate transactions
without consent.
The Company had a net cash position of $7.5 million at 31
December 2022 and with the new Loan facility it will allow
management to focus on scaling the business, including compelling
investments in the existing portfolio and new opportunities.
Appointment of Nominated Advisor and Broker
The Company is pleased to announce the appointment of Canaccord
Genuity Limited as its Nominated Adviser and Sole Broker with
immediate effect.
Nick R Hurd, Chairman of i(x) Net Zero, said: " We strongly
believe in building a portfolio of high quality companies that are
actively engaged in the much needed global energy transition. We
were also cognisant of the fact that we needed to take steps to
streamline our business and so sharpen our strategic focus on value
creation for shareholders. We are confident that the measures
announced today give us a strong platform for growth and increased
liquidity."
- Ends -
For further information visit https://ixnetzero.com/ or contact:
i(x) Net Zero Via Buchanan below
Pär Lindström - Chief Executive
Officer
Canaccord Genuity Limited
Nominated Adviser & Broker +44 20 7523 8000
Max Hartley
Harry Pardoe
Buchanan
Helen Tarbet +44 7872 604 453
Simon Compton +44 7979 497 324
Notes to Editors
About i(x) Net Zero PLC
i(x) Net Zero PLC is an AIM quoted investing company that seeks
to provides its shareholders with the opportunity to create long-
term capital growth with positive, scalable, measurable and
sustainable impact on the environment and on the communities it
serves.
In accordance with its belief that the world's biggest problems
are also the biggest market opportunities, i(x) Net Zero focuses on
two critical areas in which it aims to make a positive impact: (i)
Energy Transition and (ii) Sustainability in the Built
Environment.
The Company uses a multi-strategy investment approach, providing
the companies in which it invests with the expertise and catalytic
capital to help them grow. To date, i(x) Net Zero has invested in
biofuels, direct air capture (carbon removal), renewable energy,
sustainable workforce housing and net zero construction technology
.
i(x) Net Zero is a signatory to the UN Principles for
Responsible Investing.
The Company has received the London Stock Exchange's Green
Economy Mark.
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