25 October 2023 Vulcan Industries plc ("Vulcan" or the "Company") Forepower Lincoln (250) Limited, disposal of 49.9% and project funding agreement Vulcan Industries plc (AQSE: VULC) is pleased to announce that it has disposed of 49.9% of its interest in the share capital of Forepower Lincoln (250) Limited ("FPL 250"), a 240-megawatt (MW) Lithium-ion Battery Storage project. Disposal rationale Following the acquisition of FPL 250 on 6[th] March 2023, Vulcan has been reviewing the available alternatives to develop the project. The disposal secures development funding through the planning process and will allow the project to secure a firm grid connection date. These are expected to enhance the value of the project as it moves towards the Ready to Build stage. Forepower Lincoln (250) FPL 250 owns a 240MW Lithium-ion Battery Storage project and holds a grid connection contract (to connect to the National Grid Infrastructure) and an option to lease a parcel of land for a minimum of 25 years. It has been identified as a major infrastructure project which is currently in the pre -planning stage. The management team of FPL 250 have a track record in identifying Battery Storage opportunities, obtaining planning, developing and bringing projects online. Total Consideration The total consideration receivable is £1,500,000 payable in cash as the project progresses and no later than the earlier of the sale of the project or the 5[th] anniversary of the agreement in the event that both parties elect to develop the project. The Buyer has agreed to advance a total of £500,000 to fund the initial planning phase in the form of a loan. This loan, with a zero coupon, is secured over the project assets. It is intended that this loan will be offset against any remaining consideration due. The Company intends to draw down on this loan as expenditure commitments fall due. Ian Tordoff, Executive Chairman, "We are delighted to be working with the buyer to move the project forward in the planning phase. This is expected to enable the project to crystalise additional value for shareholders. Further announcements of the attainment of project milestones will be made in due course. Battery Storage is an important part of the drive for increased renewable energy in theUK and provides significant opportunities for growth in future." Further delays in the Publication of Annual accounts Further to the announcement made on 28 September 2023, the Company is still working with the Company's auditor to finalise the Audit of the Group's accounts for the year ended 31 March 2023. Publication of the annual report is expected to be no later than mid November 2023. For further information, visit: https://vulcanplc.com Contacts Vulcan Industries plc Neil Clayton nc@vulcanplc.com First Sentinel Corporate Finance Ltd (AQSE Corporate Adviser) +44 20 3855 5551 Brian Stockbridge Gabrielle Cordeiro About Vulcan Vulcan seeks to acquire and consolidate traditional but historically profitable engineering, manufacturing, and industrial SMEs for value and to enhance this value in part through group synergies, but primarily by unlocking growth which is not being achieved as a standalone private company. For more information visit https://www.voxmarkets.co.uk/listings/PLU/VULC Forward Looking Statements This news release may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law. The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
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