Corre Energy, a renewable energy storage developer listed in Dublin, is looking to generate €2 million via a share sale to its initial shareholders and a long-standing investor. This move comes as part of the company’s ongoing discussions with potential parties interested in making a substantial financial commitment to the company. The primary shareholders of the company include ex-director Darren Patrick Green, who resigned in February, CEO Keith McGrane, and entrepreneur Brendan Boyd.
This monetary injection will aid in maintaining the operational funds of the company as it progresses further in its critical investment strategy managed by Rothschild & Co, according to Corre. In addition, the company plans to extend an extra share sale offer to other eligible existing shareholders, allowing them an opportunity to prevent dilution of their stakes caused by the large investor group placement.
The shares, worth €2 million in total, are up for grabs at 46 cents each, matching their closing price this past Wednesday. Corre, which went public on Euronext Dublin almost three years ago, recently announced its partnership with investment bank Rothschild & Co to assist in dealing with a range of proposals it received to infuse additional capital into the company, allowing for further project investment and covering operational costs.
A steep decline in the company’s share price, by over 85% in the last year, can be attributed in part to a slump in the broader green energy sector arising from dwindling energy prices and the pressure of rising interest rates impacting this capital-heavy sector. However, analysts suggest that investor concerns about Corre’s failure to adequately outline the financial specifics of its diverse projects, which would allow potential investors to gauge their profit potential, also played a role.
Among Corre’s most advanced ventures is its Zuidwending (ZW1) venture located in Groningen province in the Netherlands. Expected to be operational by the end of 2026, ZW1 could supply up to 320MW of electricity to the grid for up to three and a half days. Noteworthy projects in the pipeline include Corre’s 320MW Green Hydrogen Hub project in Denmark, another Dutch facility (ZW2), and a proposal to establish three compressed air energy storage plants in German cavities acquired last year.
In the latter part of February, Corre’s shares experienced a decline for the first time ever, with values plummeting beneath the initial IPO fee of €1. This drop-off took place when Mr Green vacated his position as an executive director, following allegations against a Singaporean firm – of which he was the ultimate owner – for potential tax evasion, as cited by UK tax officials.
When questioned by The Irish Times, Mr Green expressed profound shock at these allegations, stating that he had distanced himself from the company for many years both in terms of management and his directorial role.