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Riverstone Energy further invests in Infinitum despite wind-down

ALN

Riverstone Energy Ltd on Friday said it has made an additional commitment of up to $5.2 million to its current investment in Texas-based electric-motor manufacturer, Infinitum Electric Inc.

The London-based energy infrastructure and energy transition credit investor noted its existing investment in Infinitum was valued at $16 million as at September 30.

Riverstone said the company will use the capital injection for short to medium term working capital to support its operations.

Back in August, Riverstone started the process of a managed wind down to realise ‘all the existing assets in an orderly manner’, stopping new investments and returning capital to shareholders through compulsory redemptions.

On Friday, the investor acknowledged the ongoing wind-down, but noted that it retains the ability under its investment policy to approve capital expenditure where ‘necessary or desirable to protect or enhance the value of any existing investment or to facilitate an orderly disposal.’

The company explained that investment manager RIGL Holdings LP advised that Riverstone’s commitment to Infinitum was necessary to support operations and commercial momentum, as well as to ‘avoid a liquidity constraint’ which would result in a decline in the value of its investment.

Shares in Riverstone Energy were down 0.1% at 722.00 pence on Friday afternoon in London.

‘The company and the investment manager remain focussed on realising the Company’s investment in Infinitum in an orderly manner and at an appropriate time,’ said Riverstone Energy.

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