Parkmead, the independent energy group focused on growth through gas, oil and renewable energy projects, has announced a twelve month extension to the interest-bearing loan to Energy Management Associates Limited ('EMAL'). The outstanding amount of the loan is £2.67m, having been reduced from £2.90m following the repayment of £230,000, ahead of the expiry of the loan on 27 July 2024.
Through this loan facility, Parkmead continues to benefit from an exclusive first right over all renewable energy opportunities identified or held by EMAL. The Loan will continue to bear a fixed interest rate of 2.5 per cent per annum, payable to Parkmead. This exclusive arrangement has already benefitted Parkmead significantly. Firstly, through securing ownership of the Pitreadie Wind Farm opportunity and secondly, through the introduction to Parkmead of the opportunity to acquire 100% of the operational Kempstone Hill Wind Farm, which has been generating revenues for Parkmead since 2022. Further renewable energy opportunities are currently being evaluated through this arrangement in the areas of wind and solar energies.
The entry by the Company into the Loan extension with EMAL, in which Tom Cross is a director and shareholder, is a related party transaction for the purposes of Rule 13 of the AIM Rules. The independent Directors (being those other than Tom Cross), having consulted with Cavendish Capital Markets Limited, consider that such arrangements with EMAL are fair and reasonable insofar as the Company's shareholders are concerned.
Source: Parkmead
