LIB Libertine Holdings Plc

7 August 2024

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Libertine Holdings PLC

("Libertine" the "Company" or the "Group")

Engagement of Interpath Advisory to explore sale options for Libertine FPE or its assets

In line with the Company's announcement on 31 July 2024, the Board still anticipates receiving the first £110,000 tranche of the Loan Amount by 16 August 2024 and the second £110,000 tranche by 14 September 2024. This is in advance of the £2 million Proposed Investment which the Company still anticipates being deposited by Reliant FZCO into a third-party UK escrow account (less the Loan Amount) by September 2024 . At the time of this announcement neither tranche of the Loan Amount nor the Proposed Investment has been received.

As the Board awaits receipt of first tranche of the Loan Amount, and in line with the Company's plans announced in July 2024, it has appointed Interpath Advisory to seek advice on appropriate alternative next steps which include exploring a potential sale of the Company's wholly owned subsidiary Libertine FPE Limited (registered number 07022645) or its assets (the "Process").

There can be no guarantee that Loan Amount will be received or that the Process will present a favourable alternative transaction opportunity for the Company (an "Alternative Transaction"). Even if an Alternative Transaction should be forthcoming, there can be no certainty on the timing or level of return, if any, to shareholders. Any Alternative Transaction may be conditional upon, inter alia, shareholder approval.

The Company currently has cash resources to maintain operations until late August by which time the Board expects to have received the first tranche of the Loan Amount. Given the Company's current financial situation and the timing uncertainty around the receipt of funds the Board will continue to seek advice on the appropriate next steps during August (taking account of the expected receipt of the first tranche of the Loan Amount, the value of Libertine FPE Limited 's assets which may be realised via an Alternative Transaction, the Company's cash position, and the directors' obligations to creditors).

Should the first tranche of the Loan Amount not be received by 16 August 2024, and in this event should the Process not conclude positively or in the requisite timeframe it is likely that the Company may then not be able to meet its liabilities as they fall due and it may enter into administration or another form of insolvency procedure, under which the timing or level of return, if any, to shareholders would be uncertain.

Defined terms in this announcement bear the same meanings as in the announcement published by the Company on 29 July 2024 unless otherwise indicated.

For more information, please visit www.libertine.co.uk or contact:

About Libertine

Founded in 2009, Libertine provides technology platform solutions for Original Equipment Manufacturers ("OEMs"), enabling efficient and clean power generation from renewable fuels, and more effective energy storage devices and gas compressor systems. Libertine was admitted to trading on the AIM market of the London Stock Exchange in December 2021. 

Libertine has created two technology platforms, each using the same core technology elements, which the Company provides to its OEM customers for their development of Linear Generator and Linear Motor products:

-       The intelliGEN™ platform enables the creation of clean, highly efficient and fuel-flexible Linear Generator products including:

•      Heavy-duty hybrid powertrains of trucks, buses, tractors, construction and mining equipment;

•      Medium and light-duty hybrid powertrains of commercial vehicles operating over longer distances;

•      A proportion of the passenger automotive market where vehicle use and recharging constraints are a barrier to battery electrification; and

•      A wide range of off-grid, portable power and distributed power generation applications.

-       The HEXAGEN^TM platform enables more effective energy storage, thermal power generation, waste heat recovery and gas compression products including:

•      Stirling Engine power generators and thermal energy storage systems;

•      Linear motor reciprocating compressor (LMRC) systems for hydrogen refuelling stations; and

•      Organic Rankine Cycle waste heat recovery systems.

These two platforms are a result of over a decade of development and performance validation of Libertine's proprietary core technology elements including its linear electrical machines, controls and developer tools, and are protected by a broad international portfolio of over 40 granted patents, with multiple further patents pending protecting recent developments.

The potential market for Linear Generator products goes well beyond the distributed power generation applications where Linear Generators are already in commercial use today, complementing intermittent renewable power with clean, on-demand power generation. Linear Generators also have the potential to complement battery electrification in hybrid powertrains, providing on-board power generation to address the practical and economic barriers to rapid adoption of clean electric propulsion using battery electric powertrain technology alone.

Working with OEMs from an early stage in the development cycle ensures Libertine's technology is effectively integrated into OEM products, maximising the performance and economic benefits provided by Libertine's platform technology. Libertine has developed a portfolio of over 30 granted patents in addition to a significant body of technical know-how generated since the Company's formation. The Company's senior management team and board includes executives with decades of deep technical experience in the automotive and energy industries.