By Stock Market Wire.
Camco Clean Energy has reached a conditional agreement to sell its US biogas assets for an initial consideration of $4.6m and up to an additional $1.0m of deferred consideration dependent on the fulfilment of certain conditions.
On 30 September the Company announced that following completion of the roll-in of the minority interests in Renewable Energy Dynamics Holdings Limited, its RedT Energy Storage business would become the primary focus for Camco. It also announced that it would continue with its Africa Fund Advisory business and was continuing to progress the ongoing strategic review of its remaining US activities. Through the strategic review, the board has concluded that it is in the best interests of the Company to pursue the Transaction so as to provide additional resource to enable further investment in the RedT Energy Storage. Following completion of the Transaction, the Company will have materially enhanced resources and will have a debt free balance sheet.
The company has conditionally agreed to sell its entire interests in AG Power Jerome, LLC (which owns the Jerome biogas facility) and AG Power DCD LLC (which owns the Twin Falls facility), to Clean Power Holdings LLC, a Delaware incorporated business focused on developing, owning and operating anaerobic digestion biogas assets in the US for initial consideration of $18.9m less associated debt of approximately $14.3m.