Company approved to issue and admit 850 million ordinary shares on main JSE market 

Durrant Pate/Contributor

Shareholders have given Innovative Energy Group Limited the green light for its planned US$ 5 million capital raise by approving a number of resolutions at its recent Annual General Meeting.

Shareholders gave approval for the company to issue and admit further participating voting shares amounting to 850 million ordinary shares on the Main Market of the Jamaica Stock Exchange (JSE), which corresponds to the class of participating voting shares already admitted on the said market. 

This block of shares “may be allotted by the Board of Directors to such persons on such terms and conditions and at such times the Board of Directors think fit and in accordance with the (JSE) Rules”.

The resolutions also give permission to list those new ordinary shares on the JSE and that the board be given authorization to execute all the necessary steps to execute this process. Innovative Energy Group, formerly known as Ciboney Group plans to issue the new shares for the acquisition of its associated company, Innovative Energy Company DBA IEC SPEI Limited. 

Agreement for acquiring Innovative Energy Company DBA IEC SPEI equity

Last August Innovative Energy entered into an agreement with Innovative Energy Company DBA IEC SPEI Limited to purchase 100% of its shares for a purchase consideration of USD 17,746,443 (equivalent to J$2.8 billion), thereby obtaining full control over all its assets and liabilities. 

Innovative Energy is actively pursuing opportunities in Jamaica’s renewable energy market and is in need of additional capital to expand into utility-scale projects, electric vehicle infrastructure, as well as residential and commercial solutions.

Shareholders also gave approval for Innovative Energy “to make the necessary application for admission for the further issue to the JSE, in which, the Directors and the Company Secretary are authorized to execute all steps and documents, for and on behalf of the Company, including but not limited to the corporate shelf documents required by the Jamaica Stock Exchange and the Main Market Rules, as well as to execute and deliver all such other deeds, documents, instruments in writing and to perform and do all such acts and things, as may be considered necessary, desirable or useful for the purpose of giving effect to this Resolution.”

To support Innovative Energy’s ambitious plans, the company is initiating a capital raise of $5 million, which the purchase of with Innovative Energy Company DBA IEC SPEI is a first step. Thereafter, the company will be initiating a US$5 million capital raise via a combination of private equity and an APO (Additional Public Offering),” Chairman and CEO, Nigel Davy told shareholders.

He explained that, “Further, capital for specific projects in our pipeline will be secured through other long-term instruments such as green bonds. Our board, financial partners, and consultants are working to ensure this process is efficient and beneficial to all stakeholders.”