Business
Successful Loan Restructuring
Successful Loan Restructuring.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6481N\n Echo Energy PLC\n 01 October 2021\n \n \n \n \n 1 October 2021\n \n \n \n \n \n Echo Energy plc\n \n \n (\"Echo\" or the \"Company\")\n \n \n \n \n \n Successful Loan Restructuring\n \n \n \n \n \n Echo Energy, the Latin American focused upstream oil and gas company, is pleased to announce that it has successfully agreed the restructuring of the Company's £1.0 million loan originally provided to the Company in March 2017 and now held by Spartan Class O (the \"Lender\"), a sub-fund of Spartan Fund Limited SAC (the \"Loan\") with the Lender.\n \n \n \n \n \n The terms of the amendment to the Loan (the \"Amendment\") are as follows:\n \n \n \n \n \n · \n Maturity extended by 2 years such that the then outstanding remaining principal and accumulated accrued interest will mature on 8 March 2024 (\"Maturity\") following four quarterly cash prepayments of £25,000 commencing on 31 March 2023.\n \n \n \n \n \n · \n Interest reduction such that all Loan interest will be accrued and paid on Maturity at a reduced rate of 8% per annum from Amendment (previously 12% per annum) on outstanding principal on a non-compounding basis. \n \n \n \n \n \n · \n 15% of the remaining £850,000 Loan principal, representing £127,500, has now been converted into 10,200,000 new Echo ordinary shares (the \"Conversion Shares\") at an effective issue price of 1.25p - a premium of 108% to the closing mid market price per Echo ordinary share on 30 September 2021. \n \n \n \n \n \n · \n Conversion Shares to be locked-in for a period of 6 months from Admission (as defined below). \n \n \n \n \n \n Prior to the Amendment the full Loan, together with interest, had been due to mature on 8 March 2022 - with quarterly cash repayments of £50,000 prior to that maturity date. \n \n \n \n \n \n In connection with the Amendment, the Lender has been issued with 3,096,429 warrants to subscribe for new ordinary shares in the Company at a price of 0.7 pence per new ordinary share, exercisable from the date of grant and with an expiry date of 30 September 2022.\n \n \n \n \n \n Application has been made for the Conversion Shares,\n which rank pari passu with the Company's existing ordinary shares, to be admitted to trading on AIM. It is expected that admission of th...