Glencore, Merafe and the af Jochnick family – cornerstone investors in climate compensating preference share
VÄSTRA FÖRLUNDA, Sweden, Aug. 8, 2022 /PRNewswire/ — Glencore International AG (referred to below as “Glencore”), Merafe Resources Limited (referred to below as “Merafe”) and the af Jochnick family (collectively referred to below as “Cornerstone Investors”) have undertaken to subscribe for preference shares in the event of a new issue of such shares later in the year, as planned by Swedish Stirling AB (publ) (referred to below as “Swedish Stirling” or the “Company”). The subscription undertakings amount to a total of SEK 37 million.
Clean-tech company Swedish Stirling announced earlier this year that it was looking into the conditions for issuing a new carbon-offsetting preference share to finance the production of PWR BLOK for projects in South Africa. The Company have received commitments from the Cornerstone Investors to acquire preference shares totaling SEK 37 million in the event of a new issue of such shares in the Company. The commitments are conditional on the completion of the preference share issue and, in the case of Merafe, exchange control approval from the South African Reserve Bank. The Cornerstone Investors will be prioritized in the allotment of preference shares and in the event of an issue of such shares, receive their allocations in full, pursuant to their respective commitments. The Company will use the subscription undertakings for the financing of the Lion Project operated by the Glencore Merafe joint venture (the “Glencore Merafe JV”) prior to use for any other project or purpose.
Swedish Stirling intends to issue a carbon-offsetting preference share that will be unique in its class, in that it combines an attractive annual return with the fact that each preference share also reduces a certain amount of CO2 annually. This is made possible by the Company intending to retain emission rights generated from the Swedish Stirling facility at the Lion smelter for the first 5 years of the project or until it disposes of the facility and enables investors to participate to the global climate change mitigation efforts by financing the necessary energy transition.
“It is a strength to have Glencore, Merafe and the Jochnick family ready as cornerstone investors for a future issue of carbon-offsetting preference shares. Glencore’s decision to invest in financing the production of PWR BLOKs for the Lion Project is clear evidence that cooperation between the companies is growing ever stronger. Our relationship with Glencore is currently one of our biggest assets,” explains Dennis Andersson, CEO of Swedish Stirling.
On April 28, 2021, Swedish Stirling signed an energy conversion services agreement with Glencore Operations South Africa Proprietary Limited, on behalf of the Glencore Merafe JV, pertaining to the installation and operation of PWR BLOKs totaling 10 MW in capacity at the Glencore Merafe JV’s Lion ferrochrome smelter, in South Africa. The agreement includes an option for Glencore to acquire facilities from Swedish Stirling.
If Swedish Stirling’s Board of Directors, in consultation with the Company’s financial advisors, ABG Sundal Collier and Bryan, Garnier & Co, should decide to issue new preference shares as authorized by the Annual General Meeting of April 21, 2022, such a decision and the full terms and conditions of any such new issue of preference shares will be communicated during the third quarter of this year at the earliest. The prospectus for the new share issue will be published separately.
For further information please contact:
Sven Ljungberg, CCO, Swedish Stirling AB, +46 (0)31 385 88 30 [email protected].
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