Parkmead extends loan and exclusivity deal with EMAL

(Sharecast News) - Parkmead announced the extension of its loan and exclusivity agreement with Energy Management Associates (EMAL) on Friday, reinforcing its access to a growing pipeline of renewable energy opportunities while maintaining a zero net cash cost structure. Under the revised terms, the exclusivity agreement - originally signed to secure Parkmead's first right over all renewable projects originated or owned by EMAL - was extended to 31 December 2028

The AIM-traded firm said the associated loan was reduced to £2.4m following a £0.27m repayment in July.

It said the interest rate was adjusted to a floating rate equivalent to the Bank of England base rate, currently 4.25%.

Parkmead said the arrangement had already yielded several high-value opportunities, including the acquisition of the operational Kempstone Hill Wind Farm, which had contributed to revenues since early 2022, and the Pitreadie wind farm, a core component of the proposed 148MW Glenskinnan Renewable Energy Park.

That project, being developed in partnership with Galileo Empower, would include wind, solar PV, and battery storage.

The company said it was continuing to evaluate further merger and acquisition activity across wind, solar, battery storage, forestry, and biomass - many of which, it said, stemmed from the EMAL partnership.

Parkmead said the agreement constituted a related party transaction under the AIM rules, as EMAL director and shareholder Tom Cross is also a director of Parkmead.

It said the independent directors, after consulting with Cavendish Capital Markets, considered the terms "fair and reasonable insofar as the company's shareholders are concerned".

At 1103 BST, shares in the Parkmead Group were up 2.5% at 16.4p.

Reporting by Josh White for Sharecast.com.