A deal to acquire a stake in Enerstry Group has led to a trebling of the Nova Resources Ltd share price.
Nova is acquiring 23.7% of Enerstry Group for £806 and providing a £806,000 unsecured loan with an annual interest rate of 10%. Management owns 50% of Enerstry Group, which owns 93.3% of Enerstry Korea and that stake can be increased to 99%.
Enerstry Group is a builder and operator of renewable energy plants. The first plant, which uses wood chips, has been built on land owned by milk producer Yonsei Milk, which is taking the electricity generated for the next 10 years. The rate charged is cheaper than Liquefied Natural Gas. Revenues should be $1.2m a year. Further plants will be built for secured customers.
At 2.88p a share, Nova is valued at £3.72m.
Late last year, Nova agreed two investment facilities of up to £500,000 each. Each of the facility providers are subscribing for £258,000 worth of Nova shares at 1p each. They are also being issued four times as many warrants as shares. Nova has also raised £30,000 from unsecured loan notes.
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