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Genesis Energy agrees with investors on capital raise up to €90m

The board of Genesis Energy Investments, which owns units building solar panel plants in Hungary, Spain and Singapore, said it reached an agreement on Tuesday to raise up to €90 million in capital from investors, mostly mining companies based in South Africa.

“The first aim of the planned and committed capital increase is to allow the solar projects to develop further, bring new equity into the Spanish project to enable the factory's building to be executed, further, to enable the qualifications to receive the government support and to draw the additional possible soft loans from the Spanish government and herewith fully capitalize Genesis Solar Espana so it can start ordering the production equipment,” the statement said.

The participants in the capital raise, to be no less than HUF 21.6 billion (€81 million) or, in the case of contribution in kind, HUF 24.1 billion (€90 million), include Switzerland-based Vital Source, a unit of Vital Planet, an institutional investor in the areas of renewable energy, and the South African mining companies Logical Mining, Pinning Properties, Calypso Mining Advisers, Mohikan Development. Also involved are the original investors in Genesis Energy Investments: Genesis Investment Funds and Genesis Capital Management.

The statement also said Genesis Energy Investments would transfer ownership of the companies building the solar panel plants to Genesis Solar Corporation, registered in the United States, by April 19, 2010. (MTI-Econews)