THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU AS IT FORMS PART OF THE LAW OF ENGLAND AND WALES BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

8 November 2023

eEnergy Group plc

("eEnergy" or "the Company")

Strategic Investment from Luceco plc

Board considering unlocking value via a disposal of the Energy Management division

eEnergy (AIM: EAAS), the net zero energy services provider, is pleased to announce it has signed a strategic investment agreement (the "Investment") with long standing partner, Luceco plc ("Luceco"), pursuant to which Luceco will invest £1,753,900 via a subscription for new ordinary shares ("New Shares") in eEnergy.

eEnergy has a longstanding relationship with Luceco principally relating to its role as a significant supply partner to the Company's eLight business, part of its Energy Services division. Luceco is a leading supplier of wiring accessories, EV chargers, LED lighting, and portable power products and is listed on the Main Market of the London Stock Exchange. 

The subscription is for 35,078,000 New Shares at a price of 5p per share (the "Subscription Price") representing a premium of approximately 25% to the Company's closing share price on 7 November 2023. Following completion of the Investment, Luceco will hold approximately 9.1% of the Company's issued share capital as enlarged by the issue of the New Shares. Completion of the Subscription is subject to admission of the New Shares to trading on AIM. The subscription proceeds will be used for general working capital purposes, including settlement of certain trading balances due to Luceco.

Following the Investment, eEnergy will maintain Luceco's share of applicable lighting spend at current levels, subject to competitive pricing and stock being made available. For so long as Luceco holds more than 6% of the voting rights in the Company, the Investment entitles it to appoint a director to the Board of eEnergy together with a right to participate, pro rata to its shareholding, in certain issues of equity securities including any future equity fundraisings.  

Potential disposal of Energy Management Division

During the first half of 2023, the Board received a number of unsolicited approaches expressing interest in acquiring the Energy Management division (the "Division"). The Board engaged professional advisers to conduct a strategic review of the Division, following which the Board received a number of indicative cash offers which valued the Division in excess of £30 million. The Board has now entered into a period of exclusivity with one of the interested parties.

The Board intend to re-invest proceeds from any sale of the Division to ensure the Company and its subsidiaries ("Group") have the appropriate financial resources to capitalise on the substantial growth potential within its Energy Services division.

While discussions are at an advanced stage, there is no guarantee they will lead to a transaction or as to the final terms of any such transaction. Any disposal of the Division will require the approval of shareholders by way of an ordinary resolution at a general meeting in accordance with the AIM Rules for Companies. A further announcement will be made as appropriate.

Admission and Settlement

Application will be made for the New Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the New Shares will commence at 8.00 a.m. on or around 13 November 2023.

The New Shares will be allotted and credited as fully paid and will rank pari passu in all respects with the Company's existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid on or after the date on which they are issued.

Total voting rights

On Admission, the Company's total issued share capital will consist of 387,224,625 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares. On Admission, the abovementioned figure of 387,224,625 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Harvey Sinclair, CEO of eEnergy plc, commented: "I am delighted to welcome Luceco as a new shareholder to the Group. The strategic investment cements our already longstanding relationship and demonstrates our combined confidence in the growth opportunities for our markets. I look forward to working with John and his team on this new partnership.

"As discussed at our Interim Results, we continue to position the Group to be able to win new larger mandates and optimise financing solutions. Following a number of inbound enquiries earlier in the year we have appointed an independent adviser and entered into a short period of exclusivity with one of the parties which has expressed interest in acquiring our Energy Management division. We will update shareholders on this process as appropriate."

John Hornby, CEO of Luceco plc, commented: "Energy efficiency has been an important driver of growth for Luceco through our LED lighting category.  More recently we have invested in EV charging because we anticipate that this, and the clean energy category more generally, will be an important growth area.

eEnergy's Energy Services division is already an important customer for our lighting projects business.  As the economy decarbonises it is well positioned to become an increasingly relevant channel in the non-residential segment, and we look forward to supporting the growth of eEnergy and exploring the potential for increased co-operation between our businesses."

Contacts:

About eEnergy Group plc

eEnergy (AIM: EAAS) is a net zero energy services provider, empowering organisations to achieve net zero by tackling energy waste and transitioning to clean energy, without the need for upfront investment. It is making net zero possible and profitable for all organisations in four ways:

eEnergy is a Top 5 B2B energy company and has been awarded The Green Economy Mark by London Stock Exchange.

About Luceco plc

Luceco plc - Bringing Power To Life

Luceco plc (LSE:LUCE) is a supplier of high quality and innovative wiring accessories, EV chargers, LED lighting and portable power products for a global customer base.

For more information, please visit www.lucecoplc.com