React Energy PLC Further re Corporate Update (5717P)
June 08 2015 - 12:53PM
UK Regulatory
TIDMREAC
RNS Number : 5717P
React Energy PLC
08 June 2015
8 June 2015
REACT Energy plc
("REACT" or the "Company")
Corporate Update
Further to the announcements of 20 May 2015 and 3 June 2015, the
Company announces that in line with his statutory duty, the
Examiner appointed to REACT (and its related companies) continues
to conduct a review of the Company's affairs and has formulated
proposals for a scheme of arrangement (the "Scheme") which will be
presented at meetings of the Company's shareholders and creditors
and, it is expected, for the subsequent approval of the High Court
in Ireland.
To this end shareholders and creditors have been notified of
meetings to be held at various times on Wednesday 10 June 2015 at
the Cork International Hotel, Cork, Ireland.
The Company also announces that it has signed a conditional
facility letter with a third party investor for up to GBP900,000
(the "Loan Facility"), the drawdown of which is subject to certain
conditions precedent being met under the Loan Facility, the Scheme
being approved by shareholders and creditors and ultimately High
Court approval of the Scheme.
Details of the Loan Facility
The Loan Facility comprises a five year term loan of GBP900,000
at 15% per annum fixed rate of interest, payable quarterly in
arrears. The net proceeds of the loan will be utilised for
corporate development and general working capital purposes. The
Loan Facility is to be repaid by way of a bullet repayment of
capital (and any accrued interest) on before the anniversary of 60
months from the date of drawdown of the Facility.
An exercisable right is attached to the Loan Facility whereby 60
days from the drawdown of the loan the investor has the right to an
amount of fully paid new ordinary shares in the Company. The
monetary value of the exercisable right will be determined by the
following formula:
9 million x (Average Share Price minus 10p), where the Average
Share Price is the arithmetic average of the Company's closing
share price on each of the 60 days following re-commencement of
trading in the Company's shares. The value of this right has a cap
of GBP600,000 and a floor of GBP200,000.
In addition, 35,300,000 warrants are to be granted to a company
related to the investor on drawdown of the Loan Note Facility,
subject to any necessary shareholder and other regulatory
requirements. These warrants will entitle the holders to subscribe
for new ordinary shares in the capital of REACT at an exercise
price of 10p per share. The warrants are assignable and capable of
being exercised for a period of seven years from the date on which
the loan facility is drawn down.
Further updates will be provided in due course.
- Ends -
For further information:
+353 (0)21 2409
REACT Energy plc 056
Gerry Madden/Brendan Halpin
+44 (0)20 7408
Shore Capital - Nomad & Broker 4090
Pascal Keane / Anita Ghanekar
About REACT
REACT Energy plc is committed to operating clean electricity and
heat generation plants in the UK and Ireland.
The Company identifies, builds owns and operates plants and
possesses significant knowledge of energy markets, clean
technologies, fuel sources, project development, project finance
and project delivery.
REACT currently has four operational clean energy plants
generating revenue from the sale of electricity and heat.
The generation of clean electricity and heat from sustainable
sources has the potential to address the key energy challenges of
energy security and carbon commitment and provide strong returns on
capital employed.
The company is listed on AIM and trades as
REAC.www.reactenergyplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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