Ncondezi Energy Limited Shareholder Loan Update (4024X)
August 10 2018 - 2:00AM
UK Regulatory
TIDMNCCL
RNS Number : 4024X
Ncondezi Energy Limited
10 August 2018
News Release
Shareholder Loan Update
10 August 2018: Ncondezi Energy Limited ("Ncondezi" or the
"Company") (AIM: NCCL) provides the following update on its
Shareholder Loan (the "Loan") restructuring process.
Key Highlights:
-- Ncondezi has to date received a number of proposals to
refinance or restructure the existing US$ 5.1m Loan (the
"Restructuring")
-- Following review of the proposals, a Loan restructuring,
including an extension, is required to enable the Company to enter
into shareholder resolutions so as to successfully refinance or
restructure the Loan
-- The Company has submitted a proposal to Loan holders
("Lenders"), which includes the following amendments to the
existing Loan agreements:
o 12 month extension
o 12% interest rate, paid at maturity. Represents 52% reduction
over previously agreed rates
o Ability for Lenders to swap debt for equity in part or in full
at a conversion price of 10.0p per share, representing a premium of
33% to the closing share price on 9 August 2018 (conditional on
shareholder approval)
o Ability for Ncondezi to redeem the Loan before maturity in
full or in part
-- To date, Ncondezi has received indications from Lenders
representing over 60% of the Loan that they will accept the
Restructuring proposal, with no rejections. This includes Company
Chairman, Michael Haworth and Non-Executive Directors, Estevao Pale
and Chris Schutte. The balance of Lenders, including one party that
represents 37% of the Loan, are to be engaged within the near
future
-- The Restructuring would be subject to all Lenders agreeing to
the terms and documentation, as well as shareholder approval for
the necessary share authorities to allow conversion of the Loan
into equity
-- Restructuring documentation is expected to be concluded prior
to 2 September 2018 and share authorities are expected to be
received prior to the end of September 2018
-- A further update to shareholders will be provided at the end
of August 2018 before the Loan's current maturity date on 2
September 2018.
Related Party Transaction
The proposed Restructuring would constitute a related party
transaction for the purposes of the AIM Rules for Companies.
Accordingly, should the Restructuring be accepted by all Lenders
and before signing, the Company's Independent Directors need to
follow due process to confirm that the terms of the Restructuring
are fair and reasonable insofar as its shareholders are
concerned.
There is no certainty that the transactions contemplated by this
announcement will occur.
Ncondezi's Non-Executive Chairman, Michael Haworth, commented:
"In parallel to the good progress that has been made with its
potential strategic partners over the last 12 months, the Company
has been considering a number of Loan refinancing and restructuring
options to settle the Loan. The Company has been encouraged by the
improving terms of the refinancing options over this time, however,
in considering these options it has become clear that the Loan
would need to be restructured before any of the options could be
successfully implemented. A proposal has been submitted to Lenders
which will facilitate the refinancing of the Loan, and has received
in principle support from most of the Lenders.
The proposed terms of the Restructuring will provide investors
with comfort that the Company has sufficient time to consider its
refinancing options whilst unlocking further value from its
project, and the ability to restructure the Loan ahead of the
maturity date as and when a refinancing option is finalised.
The finalisation of the Restructuring will be subject to Lenders
agreeing to its terms and finalising the documentation, and the
ability to convert the Loan into equity is conditional on
shareholder approval for the necessary share authorities. The
Company is planning to have this all completed before the end of
September 2018."
Enquiries
For further information please visit www.ncondezienergy.com or
contact:
Ncondezi Energy: Hanno Pengilly +27 (0) 71 362 3566
Liberum Capital Limited: +44 (0) 20 3100
NOMAD & Joint Broker Neil Elliot / Richard Crawley 2000
Novum Securities
Limited: +44 (0) 20 7399
Joint Broker Colin Rowbury 9427
Note:
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public domain. If
you have any queries on this, then please contact Hanno Pengilly,
Chief Development Officer of the Company (responsible for arranging
release of this announcement) on +27 (0) 71 362 3566.
Ncondezi owns 100% of the Ncondezi Project which is
strategically located in the power generating hub of the country,
the Tete Province in northern Mozambique. The Company is developing
an integrated thermal coal mine and power plant in phases of 300MW
up to 1,800MW. The first 300MW phase is targeting domestic
consumption in Mozambique using reinforced existing transmission
capacity to meet current demand.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFKCDDOBKDFFK
(END) Dow Jones Newswires
August 10, 2018 02:00 ET (06:00 GMT)
Solgenics (LSE:SGN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Solgenics (LSE:SGN)
Historical Stock Chart
From Apr 2023 to Apr 2024