Business
New Convertible Facility Agreement and GM Notice
New Convertible Facility Agreement and GM Notice.
About this update from Kropz Plc
[{"type":"text","content":"\n \n \n The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the \"UK MAR\") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n \n \n \n \n 11\n May 2022\n \n \n \n Kropz Plc\n \n \n \n (\"Kropz\" or the \"Company\")\n \n \n \n New Convertible Facility Agreement\n \n \n \n \n and\n \n \n \n \n General Meeting Notice\n \n \n \n Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,\n announces it has entered into a new conditional convertible equity facility of up to ZAR 177 million (approximately US$11 million) (\"ZAR 177 Million Equity Facility\"), with the ARC Fund (\"ARC\"), the Company's major shareholder, to fund the Company's Elandsfontein phosphate project to first revenues from bulk concentrate sales.\n \n \n As announced on 27 April 2022,\n Kropz and ARC entered into a ZAR 25 million (approximately US$ 1.60 million) bridge loan facility\n (the\n \"\n \n Loan\n \n \"\n ) to meet cash requirements in April 2022. The Loan\n will be set-off against the\n ZAR 177 Million Equity Facility, once approved and unconditional, leaving ZAR 152 million available for drawdown over the term.\n \n \n As set out in the announcement on 27 April 2022, the Company\n faces a funding shortfall of approximately US$ 11 million (approximately ZAR 177 million) comprising the ZAR 25 million cash requirement for April 2022 and an additional\n ZAR 152 million required\n to deliver the Company's Elandsfontein phosphate project to first revenues from bulk concentrate sales. The shortfall is\n due to slower than expected progress in the ramp up of operations at Kropz Elandsfontein (Pty) Ltd (\n \"\n \n Kropz Elandsfontein\n \n \"\n ), resulting in delays in the production of sufficient phosphate rock concentrate required for the first bulk sales. Kropz Elandsfontein is now expected to achieve its first significant revenues in late Q2. The delay in commissioning was largely driven by the need to re-engineer parts of the fine flota...