Genex Power Ltd Stock Market Press Releases and Company Profile
Signs A$25M Share Subscription Agreement with J-Power
Signs A$25M Share Subscription Agreement with J-Power

Sydney, June 6, 2019 AEST (ABN Newswire) - Genex Power Limited (googlechartASX:GNX) (Genex or Company) is pleased to announce that it has signed a Share Subscription Agreement (SSA or Agreement) with Electric Power Development Co Ltd trading as J-POWER (J-POWER).

The Agreement provides for a conditional investment of up to A$25m by way of a subscription for ordinary shares in Genex, with the proceeds to be principally applied towards Genex's equity funding component for the construction of the Kidston Pumped Storage Hydro Project (K2-Hydro).

Key terms of the SSA are as follows:

- Investment of up to a maximum of A$25 million;

- Subscription to occur at the higher of the 5-day volume weighted average price (VWAP) of Genex shares at financial close, or the date that is 5 days following financial close;

o This is subject to a subscription price cap which would result in a minimum investment of 15.00% of Genex's enlarged share capital; and

o Subject to a maximum of 19.99% of Genex's enlarged share capital;

- Provides for the appointment of a J-POWER nominee director to the Board of Genex;

- The Agreement is subject to several conditions precedent, including:

o Approval of Genex shareholders at an extraordinary general meeting (EGM);

o Execution of a Facility Agreement to be entered into between the K2-Hydro project entity and the Northern Australia Infrastructure Facility (NAIF); and

o Financial close for K2-Hydro occurring prior to 31 December 2019.

As a further condition precedent under the SSA, Genex has also agreed to enter into a Technical Services Agreement (TSA) with J-POWER wherein J-POWER will provide certain professional technical advisory services to Genex in relation to the development and operational stages of K2-Hydro.

As noted above, the Agreement is subject to the approval of Genex shareholders at an EGM. Full details of the SSA and TSA will be outlined in an Explanatory Memorandum to accompany a Notice of EGM to be sent to shareholders in the very near future.

Commenting on the Agreement with J-POWER, James Harding, CEO of Genex said:

"Genex is pleased to announce this exciting partnership with J-POWER. J-POWER are a global expert in hydroelectric projects, including pumped storage, and as such they bring significant experience and technical expertise to Genex to support in the delivery of the K2-Hydro project.

The investment by J-POWER is an important milestone, as it secures the funding required for Genex's equity component for K2-Hydro, which is being developed in a 50:50 partnership with EnergyAustralia. We are continuing to progress the final stages of the project financing with all relevant stakeholders, with financial close remaining on track for mid-2019."

About J-POWER:

J-POWER is a Japanese public utility company listed on the Tokyo Stock Exchange with a market capitalisation of approximately JPY 494Bn (as of 29 March 2019, A$6.5 billion). J-POWER has a significant portfolio of hydroelectric, coal-fired power and wind power generation assets in Japan totalling 17.9 GW. It is the largest provider of coal-fired power in Japan, and the second largest provider of hydro electric and wind power. J-POWER also owns and maintains a nationwide network of distribution facilities covering over 2,400km of transmission lines.

Outside of Japan, J-POWER has pursued a strategy of applying the knowledge and technical capabilities developed through its domestic operations to actively seek out and develop commercial power generation projects overseas. As of 31 March 2019, it had 36 facilities in operation in six countries, representing a combined generation capacity of 21.8 GW (6.9 GW net capacity).


About Genex Power Ltd

Genex Power Ltd ASX:GNXGenex Power Limited (ASX:GNX) is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.

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Contact

Simon Kidston
Executive Director
Tel: +61 2 9048 8850
Email: sk@genexpower.com.au



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