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London-listed cash shell Pineapple Power Corp (LSE:PNPL) has entered into a non-binding agreement for the reverse takeover of Irish fund manager BVP Investments. BVP is focused on companies in the green sector that have developed technologies in areas like sustainability and resource efficiency.

Regulated by the Central Bank of Ireland, BVP Investments was founded in 2004 by Elliott Griffin. Since 2007 BVP has raised and managed 14 Green BES and EII funds, which have backed some of Ireland’s most innovative companies. Among these have been HealthBeacon, Crowley Carbon, UFO Drive and UrbanVolt.

Pineapple Power said it was proposing to change its name to Cool Capital as part of the deal.

“Ireland is home to some of the most innovative and exciting companies involved in these exciting sectors and the vision shared between ourselves and BVP is the expansion of their very successful investment strategies internationally utilising Pineapple’s extensive financial contact network,” said Claudio Morandi, Chairman of Pineapple Power. “We believe the successful completion of this merger will position the enlarged company – Cool Capital PLC – for rapid expansion and value accretion. The combination of astute financial management and access to the international capital markets is a compelling combination.”

BVP is wedded to a philosophy that the future effectiveness of industry revolves around companies that can change the game in terms of efficiency and sustainability and the fund manager has a strong track record of working with companies and entrepreneurs in this area.
BVP backs companies in a range of different sectors, among then Energy, Climate Action and Sustainability, Health and Wellbeing, ICT (Information & Communication Technologies), and Services/Business Processes.

BVP’s portfolio includes companies with international exposure

Although BVP is focused on backing Irish businesses, many of its investee companies are active in markets around the world. It has developed an impressive range of businesses in its portfolio. For example, electric car rental booking app UFO Drive is already available in several European countries with scope to expand further in the very near future.

Regular readers of The Armchair Trader will know that we have been following Pineapple Power closely since before its listing on the London Stock Exchange. Pineapple Power was a cash shell that was pointed firmly at a possible acquisition within the green investment space. The cash shell was listed in London just before Christmas last year. It raised £1.3m on listing.

The proposed deal will see Pineapple Power acquiring BVP Investments, its subsidiary investment portfolios and its seed investments. The purchase price of the acquisition will be satisfied by the allotment and issue to the sellers of BVP (and of the seed portfolio) of new ordinary shares in Pineapple Power.

Further equity financing in pipeline

Pineapple Power said that it was envisaged that there will be further equity financing to fund future investment and working capital requirements at BVP. Pineapple Power may issue and allot further ordinary shares in consideration of certain conversion options by lenders to BVP’s subsidiary investment portfolio.

As per UK regulations, shares have now been suspended. Pineapple Power said it planned to seek admission for Cool Capital to the AIM market in London. The current directors of BVP will form the majority of the board of the new company, and the sellers of BVP will become the majority shareholders of the enlarged company.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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