REG - Coro Energy PLC - Convertible Loan

Coro EnergyAnnouncement

15/08/2024 07:30

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RNS Number : 5760A  Coro Energy PLC  15 August 2024

15 August 2024

 

Coro Energy Plc

("Coro" or the "Company" and together with its subsidiaries the "Group")

 

Convertible Loan

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, announces the signature of a convertible loan note.

 

The Company has signed a six month US$500,000 secured convertible loan note
(the "Loan"), which is repayable in cash at the discretion of the Company.
Should the Company decide not to repay in cash or default on the Loan, then
the Loan is convertible, together with accrued interest,  at the discretion
of the Lenders, into such number of new Ordinary shares of the Company as is
the higher of: (a) 946,063,400 Ordinary Shares, being the number of Ordinary
Shares permitted to be issued pursuant to the authority provided by
shareholders at the Company's Annual General Meeting in April 2024; and (b)
such number of Ordinary Shares calculated by dividing the total amount drawn
down under the Loan by the price per Ordinary Share at which the Company may
raise equity funds in the next six months.  The six month term Loan attracts
an annualised coupon of 40% (20% for the six month term), payable on the
amount of the Loan drawndown, and is secured on the shares of Coro Asia
Renewables Limited, the holding company for the Company's renewables business
in the Philippines.

 

The Loan has been provided by River Merchant Capital, an existing lender to
the Company under the Company's Luxembourg 8.0% listed Eurobond, which is
under a standstill arrangement as announced on 12 April 2024, and Fenikso
Limited (the "Lenders"). Each of the Lenders has provided up to US$250,000 of
the Loan. The proceeds of the Loan will be utilised to fund the Group's
renewables business and for general working capital purposes.  As at 31 July
2024, the Group had cash of £309,833 as well as its obligation under the
Eurobond of £24.95m. Accordingly, the Loan is critical to the Group's ability
to continue to meet its obligations to its creditors and protect the value of
its renewables business.

 

Tom Richardson, non-executive director of the Company, is a director of
Fenikso, one of the providers of the Loan and therefore Fenikso Limited's
participation in the provision of the Loan is considered to be a related party
transaction pursuant to Rule 13 of the AIM Rules for Companies.

 

The independent director of the Company, Harry Beamish, having consulted with
the Company's nominated adviser, considers the terms of the Loan to be fair
and reasonable insofar as the Company's shareholders are concerned.

 

The Company continues to work towards getting the Annual Report finalised
before the end of August and unsuspending the shares.

 

For further information please contact:

 

 Coro Energy plc                                          Via Vigo Consulting Ltd

 Cavendish Capital Markets Limited (Nominated Adviser)    Tel: 44 (0)20 7220 0500

 Adrian Hadden

 Ben Jeynes

 Hybridan LLP (Nominated Broker)                            Tel: 44 (0)20 3764 2341 (tel:(0)20%C2%A03764%202341)

 Claire Louise Noyce

 Vigo Consulting (IR/PR Advisor)                          Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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