Business
Convertible Loan
Convertible Loan.
About this update from Coro Energy Plc
[{"type":"text","content":"\n\n15 August 2024\n \nCoro Energy Plc\n(\"Coro\" or the \"Company\" and together with its subsidiaries the \"Group\")\n \nConvertible Loan\n \nCoro Energy PLC, the South East Asian energy company with a natural gas and clean energy portfolio, announces the signature of a convertible loan note.\n \nThe 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.\n \nThe 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.\n \nTom 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 transact...