17 December 2021

PRESIDENT ENERGY PLC

("President" or the "Company")

Successful completion of fundraise by Atome Energy PLC

Atome to be valued at £20 million pre new money

Details of dividend in specie in Atome

President Energy (AIM: PPC), the energy company with a diverse portfolio of energy assets provides an update in relation to the spin-off and IPO of Atome Energy PLC ("Atome").

Highlights

·      Successful completion of fundraise by Atome Energy PLC

·      Atome to be valued at £20 million pre new money

·      Details of dividend in specie in Atome

Atome Fundraising

Atome has successfully completed its fundraising (subject to Admission) through its brokers and PrimaryBid, and has raised up to £9 million at 80p per Atome Share subject to as below.

Importantly, this amount has been determined by the Directors as sufficient to progress the business of Atome and reach the point of Final Investment Decision in respect of both of the projects without further funding requirements. 

Of the £9 million, the sum of £6 million has been raised in the placing and Peter Levine through PLLG Investments Limited has agreed to provide Atome with a standby equity facility of up to £3 million if needed for the balance.

The facility will permit the minimum necessary dilution for all shareholders in Atome as the facility will only be exercised if in the reasonable opinion of the Directors of Atome it is required to fund further working capital needs. Under the facility Atome have will the right to require PLLG Investments Limited to subscribe for new Atome Shares at the issue price of 80p per Atome Share in the 18 months from Admission. The facility is being provided without any fees or other payments to PLLG Investments Limited, Peter Levine or any associated entity.

The Company expects that Atome will publish its Admission Document later today, and Admission is expected to occur on 30 December 2021 as planned.

Proposed dividend in specie

On 10 December 2021, the Company announced the proposed terms of the dividend in specie of ordinary shares of Atome ("Atome Shares") to Shareholders who are on the Company's register of members at the close of business on the day immediately prior to Admission ("Record Date"), such Shareholders being referred to as "Qualifying Shareholders". President Energy currently beneficially holds ordinary shares in Atome representing 85% of Atome's current issued share capital.

The expected timetable relating to the proposed dividend in specie and the ratio of entitlement to shares in Atome is set out below. The Company confirms that the entitlement ratio ("the Ratio") is as previously announced as follows:

1 Ordinary Share in Atome for every 169 Ordinary Shares in President held on the Record Date

Based on the existing issued ordinary share capital of 25 million Atome Shares, the Company will therefore distribute 12,177,955 Atome Shares to shareholders. The Company's retained interest in the enlarged issued capital of Atome following completion of the in specie dividend at Admission will be approximately 27.9%

Shareholders are reminded that they must seek and rely on their own financial or professional advice as to taxation in whichever jurisdiction they are located and that in certain locations it may not be possible for them to receive or benefit from any such dividend. Accordingly, the Company makes no representations or warranties in respect of any such regards.

Information in respect of the dividend in specie for shareholders registered in USA, Australia, Canada, Japan, South Africa, New Zealand ("Restricted Territories") will be announced shortly.

Timetable

The timetable for the proposed distribution is as follows:

Notes:

1.      All references to times in this announcement are to London time unless otherwise stated.

2.      Each of the above dates is subject to change at the absolute discretion of the Company and will be notified through a further announcement via RNS.

Shareholders should note that, unless the counterparties specifically agree otherwise, a buyer of the Company's Ordinary Shares ahead of the Ex-Date will assume the benefit to the Atome Shares and the seller would need to pass the benefit to the buyer, even if the seller is the recorded owner at the Record Date.

Rob Shepherd, Finance Director commented,

"We are absolutely delighted that the Atome team has successfully completed the fundraise ahead of the forthcoming spin-off and IPO. President commenced evaluating renewables opportunities in mid 2020 and focused in on hydrogen shortly thereafter so to see what has been achieved within some 18 months is really pleasing. A very experienced team has been assembled at Atome and two exciting projects in Paraguay and Iceland have been secured and are being progressed at speed, a process that can now be further accelerated towards Final Investment Decision in both countries with the funding secured.

We are of course extremely grateful for the considerable financial support being offered to Atome by Peter Levine, something that we at President have been significant beneficiaries of that has enabled us to progress projects that otherwise wouldn't have been possible. His support for Atome in challenging circumstances means that the high quality team there can now focus on creating the significant value that sits within the business, for the benefit of all of us both as Atome and also as President shareholders."

Contact:

Notes to Editors

President Energy is an oil and gas company listed on the AIM market of the London Stock Exchange (PPC.L) primarily focused in Argentina, with a diverse portfolio of operated onshore producing and exploration assets.

The Company has operated interests in the Puesto Flores, Estancia Vieja, Puesto Prado and Las Bases Concessions, and Angostura exploration contract, all of which are situated in the Río Negro Province in the Neuquén Basin of Argentina and in the Puesto Guardian Concession, in the Noroeste Basin in NW Argentina. Alongside this, President Energy has cash generative production assets in Louisiana, USA and further significant exploration and development opportunities through its acreage in Paraguay and Argentina.

Atome Energy is the green hydrogen and ammonia subsidiary of President Energy PLC with intended operations in the Americas and Europe with its shares expected to be Admitted to trading on AIM on 30 December 2021.

With a strong strategic and institutional base of support, including the international commodity trader and logistics company Trafigura, an in-country management team as well as the Chairman whose interests as the largest shareholder are aligned to those of its shareholders, President Energy gives UK investors access to an energy growth story combined with world class standards of corporate governance, environmental and social responsibility.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.