Corcel PLC Debt Restructuring and Sale (5134V)
December 14 2021 - 2:00AM
UK Regulatory
TIDMCRCL
RNS Number : 5134V
Corcel PLC
14 December 2021
Corcel PLC
("Corcel" or the "Company")
Debt Restructuring and Sale
14 December 2021
Corcel, the natural resource exploration and development company
with interests in battery metals and flexible energy generation and
storage, announces a partial sale of its corporate debt to an
entity controlled by the Chairman and a restructuring of the
remaining balance.
Highlights:
o C4 Energy Limited ("C4") has informed the Company of the
purchase of GBP126,917 of principal and associated interest in the
Company's debt
o C4 and the Company have agreed to convert the entirety of this
position as soon as practicable with a voluntary 18-month lock-in
period
o Corcel to make GBP100,000 payment to reduce existing debt
position and has agreed with lenders to refinance the balance to 23
December 2022
o Corcel to issue lenders 3,800,000 36-month warrants with a
GBP0.015 strike price
Scott Kaintz, the Company's CEO commented:
"We are very pleased by this vote of confidence in our battery
led strategy demonstrated by our existing lenders and we look
forward to welcoming our new shareholder, C4 Energy Limited. This
restructuring gives Corcel the runway required to continue to
execute its dual track strategy of developing battery metal assets
alongside transitional energy storage and production projects.
With this restructuring completed and on-going progress at our
nickel-cobalt assets in PNG and our gas-peaking assets here in the
UK, we enter the year-end period in a strengthened position."
Debt Purchase and Conversion
As announced on 5 December 2019, the Company has an existing
unsecured GBP846,115 (GBP729,272 principal plus GBP116,843
interest) corporate debt with Riverfort Global Opportunities PCC
Limited ("RiverFort") and YA II PN Ltd ("YA II") which was due to
expire on 23(rd) December 2021.
The Company has been informed that RiverFort and YA II have sold
15% of their debt position to C4 a UK incorporated private entity
where James Parsons, Chairman of Corcel Plc, is both a Director and
shareholder. C4 has agreed with the Company to convert this
purchased debt and interest to equity as soon as is practical,
after which C4 will then voluntarily elect to lock in for a period
of 18 months.
Debt Restructuring
Corcel has also signed binding agreements with RiverFort and YA
II to restructure the remaining GBP719,198 of principal and
interest outstanding. Corcel will repay GBP100k of the principal
immediately, with the remaining GBP619,198 continuing to draw
interest at 8% per annum and be re-profiled. The parties have
agreed a 12-month repayment holiday, to 23(rd) December 2022 and
thereafter monthly repayments will begin for a six-month period. As
consideration for the reprofiling, Corcel has issued YA and RF with
a total of 3.8 million three-year warrants with a GBP0.015 strike
price.
For further information, please contact:
Scott Kaintz 020 7747 9960 Corcel Plc CEO
James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd
NOMAD & Broker
Simon Woods 0207 3900 230 Vigo Communications IR
This announcement contains inside information under Article 7 of
Regulation (EU) 596/2014.
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END
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