LONDON: Atlantis Energy, has announced the acquisition of the Green Highland Renewables project development, asset management, operation and maintenance business (GHR) from SIMEC Energy. Atlantis will acquire 100% of GHR for a nominal cash sum of £1.00 from SIMEC Energy. GHR is a profitable business with high growth prospects which provides a complete range of management, operation and maintenance solutions and services to hydro generation asset owners throughout the UK. GHR has consented more than 65 hydro schemes, built more than 45 hydro schemes and provides operation and maintenance services for more than 45 hydro schemes in the UK. GHR is headquartered in Perth, Scotland and has an operations base in Dingwall, Scotland with 23 members of staff. GHR has consented more than 65 hydro schemes, built more than 45 hydro schemes and provides operation and maintenance services for more than 45 hydro schemes in the UK. Revenue from long-term contracts to service is expected to be in the region of £4 million annually with immediate opportunities to grow the revenues by providing services to other hydro assets across the current GFG Alliance portfolio. Profits for the year ended September 2018 which were attributable to GHR's project development, asset management, operation and maintenance business were c.£200,000 and total assets for this business as at end of September 2019 were £4.3 million. The GHR management team intends to expand the provision of services to third party projects and has identified targets for increasing market share in the Scottish Highlands both within the existing SIMEC Energy portfolio and with third party asset owners. GHR has exciting prospects for future revenue growth from customer expansion throughout the United Kingdom and other green and brownfield project development opportunities domestically and abroad. GHR will provide Atlantis with the opportunity to integrate a highly experienced energy development team with the existing Atlantis project development unit located in Edinburgh, Scotland. The SIMEC group is a related party of the Company for the purposes of the AIM Rules by virtue of its status as a substantial shareholder holding 49.99% of the existing ordinary shares. Tim Cornelius, CEO of Atlantis, commented: "We are delighted to welcome the GHR team to Atlantis. We are building a highly experienced energy development and asset management team within Atlantis and GHR brings vast experience in project feasibility analysis, design, consenting, construction management, operations and maintenance and asset enhancement and optimisation. “This restructured transaction is the right outcome for Atlantis. It provides us with more near-term cash to deploy on our flagship Uskmouth and MeyGen projects which will deliver the largest possible returns for investors. We have acquired a world class, cash flow positive, profitable hydro development, consulting and O&M business which we will integrate with our existing engineering services business in Scotland to create one of the most experienced project development teams in the UK. It will allow us to focus on high margin, development opportunities such as the Uskmouth conversion project where we can deliver enhanced shareholder returns. “We will retain all the key staff, IP and know how that has made the GHR business the first-class business it is today. The restructured transaction validates the commitment SIMEC is making to building a world leading project development company with the Atlantis management team and we are very grateful for their continued financial, commercial and supply chain support." Jay Hambro, CEO of SIMEC Energy and Non-Executive Director of SIMEC Atlantis, commented: "Today's transaction is a real win-win for both SIMEC and Atlantis. The GHR development team have a proven track record of value delivery and will sit well within the Atlantis portfolio. SIMEC is committed to building the Atlantis portfolio and this transaction will strengthen the existing management team, provide long term sustainable and predictable revenues for the group and strengthen the current Atlantis asset management services offering." Stephen Hutt, Managing Director Green Highland Renewables, commented: "We are delighted to be joining Atlantis who are developing some of the most exciting renewable energy projects in the UK at present. Our team will be an excellent fit. We are looking forward to working on some of their flagship projects such MeyGen and Uskmouth as well as building our own portfolio of new hydro development opportunities in addition to expanding our current asset management services offerings to more asset owners across the country."