News blog

Libertas Capital

  • BY: Andrew Hore |
  • POSTED: 25/12/2008 |

Aim adviser Libertas Capital is raising £8.5m from Avis Energy and entering a strategic alliance with the renewable energy group.

Avis has 300 projects and joint ventures around the world and it believes that Libertas will help it raise the finance needed for these. Libertas will be adviser, arranger and lead manager on all Avis fund raisings and lead or sole adviser on mergers.

The £8.5m investment will be in the form of a convertible loan note. There will be £1.13m invested immediately. If that is converted it will be equivalent to 29.9% of the enlarged share capital of Libertas. The loan notes are convertible at 3p a share for 12 months from 1 January 2009. A circular will be sent to Libertas shareholders to approve the issue of the rest of the loan notes. Full conversion will give Avis 76% of Libertas. The loan notes have a semi-annual interest rate of 4.25%.

If the notes are not converted then 90 days notice can be given for repayment.

Avis believes that it can help Libertas in the areas of fixed income/debt products, treasury, and asset management/principal investment. Libertas may eventually open more regional offices. Avis operates in 35 countries.

Avis’ Cold Catalytic Conversion technology can convert waste into diesel fuel, electricity and water.

Avis appears keen to convert the loan notes into shares and take control of Libertas. It will appoint a new finance director and three new non-executive directors will be appointed, including Dr Cyrus Bassiri, who will receive 2% of the enlarged share capital after the investment. The stake can be diluted by equity issued to management as an incentive.

At 3p a share, Libertas is currently valued at £2.01m. 

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