Debt Restructuring and Sale

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 £126,917 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 £100,000 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 £0.015 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 £846,115 (£729,272 principal plus £116,843 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 £719,198 of principal and interest outstanding.  Corcel will repay £100k of the principal immediately, with the remaining £619,198 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 £0.015 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.

 

END

 

 

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