Business
Signature of First Institutional Funding
Signature of First Institutional Funding.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n \nRNS Number : 0670F Echo Energy PLC 15 May 2017 \n\nEcho Energy plc\n(\"ECHO\" or the \"Company\")\nSignature of First Institutional Funding \nFurther to the announcement on 18 April 2017 the Company announces that it has today entered into an enlarged institutional loan on the terms previously announced.\nGreenberry plc (\"Greenberry\") has agreed to subscribe for a total of up to €20,000,000 principal secured loan notes (the \"Loan Notes\") consisting of Loan Notes having an aggregate principal amount of €15,000,000 (the \"Subscribed Notes\") and the right to purchase (up to 9 June 2017) from the Company additional Loan Notes in an aggregate principal amount not exceeding €5,000,000 (\"Purchase Notice\") on identical terms to the Subscribed Notes. Following completion of the documentation and approval of a prospectus by the Luxembourg Stock Exchange, it is anticipated that the Greenberry Loan Notes will be admitted to the Official List of the Luxembourg Stock Exchange and traded on the Luxembourg Stock Exchange Euro MTF Market.\nThe Greenberry Loan Notes will be due for repayment on a date not exceeding five years from their date of issue, expected to be on or around 15th May 2022. The Company shall have the right to redeem the Greenberry Loan Notes at any time provided that it has adhered to certain terms of redemption. The Greenberry Loan Notes is secured pursuant to a charge over the entire issued share capital of Echo Energy Holdings (UK) Limited, a wholly-owned subsidiary of the Company, which is intended to be used for the acquisition of assets in South America. \nAs previously announced, the Company has agreed to issue warrants in favour of Greenberry as part of the institutional funding. Pursuant to the bond the Company has agreed to issue warrants to Greenberry to subscribe for the number of new ordinary shares in the capital of the Company that may be acquired by the nominal value of the Loan Notes ultimately acquired by Greenberry at a purchase price equal to the closing mid-market price on the business day immediately prior to the date of the general meeting of the Company to be held 22nd May 2017 (the \"Issue Price\"). The warrants will have an exercise price equal to 150% of the Issue Price. The grant of the warrants is conditional on sufficient authority to issue securities being approved by shareholde...