6th August 2004
Rurelec PLC today announces that it has applied for its shares to be admitted to the AIM Market of the London Stock Exchange. The 10 day notice of application was released at 13:28 on 3rd August 2004 and it is expected that trading in Rurelec Ordinary shares and warrants will commence on 18th August 2004. Arbuthnot Securities Limited are the Company's nominated advisers and Hichens, Harrison & Co plc are brokers to the Company.
Rurelec is a British company that has been newly formed to oversee publicly funded rural electrification projects in Latin America and to develop, own and operate isolated generation power plants serving rural communities in Argentina, Bolivia, Brazil and Peru.
Rurelec has recently raised in excess of £800,000, before expenses, by the issue of no fewer than 2,000,00 Placing Shares at a price of 40 pence per Placing Share. At the minimum issue level, the Placing Shares will represent 16.67 per cent. of the enlarged share capital. At the Placing Price, the Company's market capitalisation on Admission will be £4,800,000. The proceeds of the Placing will be used to provide working capital for the Company. The Company may increase the issue to a maximum of 2,500,000 Placing Shares taking the gross level of funds raised to £1 million. For every two ordinary shares subscribed, placees are also being allotted one warrant to subscribe for one new Ordinary Rurelec share over the next two years at an exercise price ranging between 60 pence and 80 pence per share.
Following its flotation on AIM, Rurelec will embark on a programme of acquisitions of power plant equipment for use in isolated generation projects in Latin America. The first acquisition is expected be the purchase of a portfolio of power assets from Empresa Guaracachi SA of Bolivia, which is in the process of replacing its smaller machines suitable for rural generation with one new large scale, high efficiency turbine to be located in Bolivia's eastern capital, Santa Cruz.
It is hoped that Admission to AIM will enable the Company to accelerate its programmes of rural electrification in the Southern Cone of Latin America.
Peter R. S. Earl
For further information contact:
Peter R. S. Earl
Tel: +44 (0)20 7793 7788