eEnergy signs strategic investment agreement with Luceco for £1.75m

eEnergy (AIM: EAAS), a leading net zero energy services provider, is pleased to announce a significant strategic investment agreement with Luceco plc. Luceco, a long-standing partner and a major supplier to eEnergy‘s eLight business, will invest £1,753,900 in eEnergy.

Investment Details and Share Capital Impact

The investment involves a subscription for 35,078,000 new ordinary shares in eEnergy at a price of 5p per share, marking a 25% premium over the company’s closing share price on 7 November 2023. This investment will see Luceco holding approximately 9.1% of eEnergy’s issued share capital. The proceeds from the subscription will primarily serve general working capital purposes and settle certain trading balances due to Luceco.

Luceco Invests in eEnergy, Strengthening Long-Term Partnership

Long-Standing Relationship and Future Cooperation

eEnergy has a well-established relationship with Luceco, known for its range of wiring accessories, EV chargers, LED lighting, and portable power products. The investment strengthens this partnership, allowing eEnergy to maintain Luceco’s share of applicable lighting spend and providing Luceco with certain shareholder rights, including the appointment of a director to eEnergy’s Board.

Potential Disposal of Energy Management Division

eEnergy is also exploring the potential sale of its Energy Management division following unsolicited acquisition interests. Valued in excess of £30 million, the division’s sale is under strategic review, with eEnergy currently in an exclusivity period with an interested party. The proceeds from any sale would be reinvested to capitalize on growth opportunities within the Energy Services division.

Executive Comments on the Partnership

Harvey Sinclair, CEO of eEnergy, expressed enthusiasm about welcoming Luceco as a shareholder, highlighting the strengthened relationship and growth opportunities. John Hornby, CEO of Luceco plc, also commented on the strategic fit and potential for increased cooperation between the two companies in the energy efficiency and clean energy sectors.