EnviroMission Signs US$110M Funding Heads of Agreement

MELBOURNE, Australia, Sept. 1, 2015 /PRNewswire/ -- EnviroMission Limited (ASX: EVM, OTCQX: EVOMY) has executed a Heads of Agreement with a multi-billion dollar Japanese Fund that sets out a major funding commitment that will take the La Paz Solar Tower to the project finance stage and provide EnviroMission with development capital for additional projects.

Funding Terms
US$10,000,000 to be banked on or before September 30, 2015 (if due to ongoing global stock market volatility, the Japanese Fund requests an extension to the date of the initial payment on September 30, EnviroMission is prepared to discuss and agree to an extension).

The initial payment of US$10,000,000 will be by way of dirct equity investment at US$0.20 per share (50,000,000 shares) or a twelve month non-interest bearing convertible note with a conversion price of US$0.20 per share.

Subsequent Placement
On completion of the initial investment the Japanese Fund must, within nine months of the initial closing, subscribe and pay for US$50,000,000 'Subsequent Placement Shares'.

If the initial payment is made via a twelve month convertible note and the note is not converted, the Japanese Fund will subscribe and pay for US$60,000,000 Subsequent Placement Shares.

The issue price of the subsequent placement shares will be the greater of US$0.20 or market. An attaching half option per issued share will be issued at 1.5 times the subsequent placement share price – these options will have an expiration date of 3 years from the date of issue.

Project Investment
The Japanese Fund has agreed to invest US$50,000,000 into the La Paz Solar Tower Development at project company level.

Investor Option
EnviroMission has agreed that the Japanese Fund shall have the right, but not obligation, to invest US$50,000,000 or more per Solar Tower Project at the project company level as a potential additional investment.

"Representatives of the Japanese Fund conveyed strong enthusiasm for investment within the renewable energy sector for the certainty energy investment historically delivers and more so that this investment will provide them with the exposure and opportunity to be involved in 'highly differentiated clean green first to market Solar Tower energy technology'," Roger Davey, EnviroMission Chief Executive, said.

The Japanese Fund indicated to Mr Davey at their meeting in Arizona that they are 'totally committed to the EnviroMission investment and Solar Tower development success.'

"This company changing investment will provide EnviroMission Limited with funding necessary to commercialise Solar Tower development in Arizona and will substantially underwrite EnviroMission's global development objectives," Mr Davey said.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/enviromission-signs-us110m-funding-heads-of-agreement-300135674.html

SOURCE EnviroMission Limited

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