Case StudyAMP

December 2016

AMP was established to develop, own and operate renewable energy generating facilities and to date, it has raised over £7.5 million using Convertible Loan Notes which are listed on TISE.

Background

The AMP Group was established to develop, own and operate renewable energy generating facilities. It specialises in the sale of wood fuels and in the installation of distributed energy projects. AMP’s wholly owned subsidiary, Forest Fuels Limited, sells high quality wood chip and wood pellet to end customers throughout the UK, while its projects division installs biomass boiler and biomass Combined Heat and Power (CHP) systems for a wide range of applications and customers. AMP is also active in developing projects for stand-by power generation facilities which aim to balance the transmission grid at times of peak demand.

To date it has raised over £7.5 million using Convertible Loan Notes (CLNs) which are listed on TISE.

Transaction

AMP was admitted to AIM in July 2014.

On the 30th March 2016, the Company issued £4.07 million of CLNs alongside £1.72 million of Ordinary Shares to support the acquisition of Forest Fuels Limited, one of the UK’s largest premium wood grade fuel suppliers to end customers.

The CLNs allowed the Company to use its asset base to offer investors security, whilst the conversion price, which was set at a 30% premium to the placing price, reduced the dilution to existing shareholders. The CLNs were listed on the Channel Islands Securities Exchange (CISE) - which is now TISE - 10 days after completion.

On 4th August 2016, AMP announced a further fund raising of £5.00 million of which £3.47 million was in CLNs and £1.54 million in Ordinary Shares. The funding formed part of the consideration to acquire two further wood fuels businesses – Midlands Wood Fuel Limited and the customer base of Mi-Generation Limited. Again, the CLNs provided investors with security but reduced dilution for existing shareholders.

Advisers

In both fund raisings AMP worked with its NOMAD, finnCap, and Welbeck Capital Partners LLP, one of the UK’s leading introducers of CLNs to major investors in both public and private companies. AMP’s legal advisers were Travers Smith and investors were advised by Gateleys PLC.

TISE listing sponsor is Verras Professional Services Limited (VPS), part of the MJ Hudson group, an independent alternative assets advisory and infrastructure business. Jonathan Bale, a director of VPS, said:

“We were delighted to be appointed to work alongside Welbeck in developing a convertible bond product that allows companies to access capital funding in a streamlined, cost-effective, efficient and timeous manner. The CLNs were an effective solution for AMP’s capital requirements, and the CISE were efficient and responsive, working closely with us to enable us to bring the CLNs to the market quickly and economically.”

Testimonials

Richard Burrell – CEO of AMP said:

“We have transformed and de-risked AMP over the last 18 months. We completed the acquisition of Forest Fuels in March and we added to this in August with the acquisition of Midlands Wood Fuel and the Mi-Generation customer base which will increase our market share towards becoming the UK’s leading supplier of biomass wood fuels to end customers.  During 2016, we have grown our project development business in biomass boilers and we are expanding into the development of grid balancing projects which aim to balance the transmission grid at times of peak demand.

"CLNs, listed on TISE, provide AMP with a complementary financing solution to raise new capital as well as being an important financing component with vendors of wood fuels businesses who wish to sell their businesses.”

 

For more information please contact us.
Fiona Le Poidevin
Fiona Le Poidevin
CEO & Director, TISEG
Mark Oliphant
Mark Oliphant
Head of Communications