REG - Cindrigo Hldgs Ltd - Financing,Financial Restructuring & Trading Update

Cindrigo HoldingsAnnouncement

23/12/2022 12:30

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RNS Number : 9469K  Cindrigo Holdings Limited  23 December 2022

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23 December 2022

Cindrigo Holdings Limited

('Cindrigo' or the 'Company')

 

Financing, Financial Restructuring and Trading Update

 

Cindrigo Holdings Limited (LSE: CINH) is pleased provide an update as part of
the Company's intended application for re-admission to trading on the London
Stock Exchange.

 

In order to ensure that the Company has sufficient working capital to satisfy
listing requirements, and to support the Company's on-going development, the
Company has, subject to execution of documentation, reached agreement with
Danir AB, ("Danir") the Company's largest shareholder and creditor, to provide
new funding and to restructure short-term debt of £4,277,513 into long-term
convertible loans, details of which are set out below,

 

Danir has provided additional loan funding of £750,000 following the failure
by BK Fortuna AS to provide its agreed funding (announced on 30 September
2022). The funding is to be by way of a 24-month convertible loan with an
interest rate payable of 5% per annum. This convertible loan will, subject to
certain restrictions, be convertible into ordinary shares from 60 days after
the Company is readmitted to listing, with a conversion price equal to the
higher of a 25% discount to the 30-day volume weighted average share price, or
the minimum price per share of 125p per share. The terms of the loan will
prevent the exercise of any the conversion rights if such conversion would
result in Danir's holding of shares and voting rights in the Company
increasing to 30% or more. Danir currently holds 29% of the Company's ordinary
shares and voting rights.

 

The existing £3,800,900 debt funding from Danir AB will be restructured and
replaced by the issue of new 10-year zero coupon convertible loan notes with a
conversion price of 15p per share, which if converted will result in the issue
of 25,339,333 new ordinary shares. Conversion of the new loan notes will also
be restricted where it would result in Danir's holding of shares and voting
rights in the Company increasing to 30% or more.

 

The short-term working capital loans of £408,422 from Spånan AB, and
£68,191 from Kvantio AB, which were both liabilities of Energy Co-Invest
Global Corp ("ECG") and due for repayment in December 2022, have been replaced
by new convertible loans in the same amounts. The term of the loans is 24
months with an interest rate payable of 8% per annum and a conversion right
from 60 days after listing at a 25% discount to a 30-day volume weighted
average share price, with a minimum conversion price of 100p per share.

 

With Danir AB providing an additional £750,000, and the restructuring of
loans the Company has secured the working capital required to enable it to
meet Listing Rules requirements in respect of its proposed application for
re-listing once the FCA has approved a prospectus, the process for which is
now well advanced.

 

In recent months the Company has made further progress with its geothermal
project in Slatina, Croatia ("Croatia One") where the pre-engineering and
drilling preparation work has been undertaken. Suppliers have also been
identified and, subject to agreement of formal contractual terms, have
indicated they are prepared to start on-site work. GEG, of which Cindrigo,
through ECG, is a substantial shareholder and its projects have progressed and
is preparing for the next phase of its development including the closure of a
€9.8million grant from the German Development Bank for its geothermal
project in Chile.

 

Cindrigo are in advanced discussions regarding the project financing required
to initiate the next steps in the Croatia One development. The financing for
each power plant project is primarily sought on a project-finance basis at the
level of the special purpose vehicle utilised for a particular project.

 

There is strong support for the geothermal clean energy sector in financial
markets. The instability and potential termination of the supply of fossil
fuels from Russia have further increased the need for locally sourced and
produced secure and stable sources of power (particularly baseload power),
from environmentally sustainable sources as the world also races to deliver on
the net zero targets. The geothermal energy market is an exciting and high
growth clean baseload energy resource which is forecasted to play an
increasingly prominent role as a green baseload power source. As a clean
baseload power developer, Cindrigo have identified Croatia as a country with
extensive geothermal potential and thanks to the strategic acquisitions of ECG
and Dravacel, Cindrigo believes it is well placed to build shareholder value
by capitalising on the opportunities available with rising market demand.

 

With our projects under way and, with the required financial restructuring
achieved and new capital raised, Cindrigo is well positioned to meet the
requirements for re-admission of its issued and to be issued share capital to
the Official List and to trading on the Main Market of the London Stock
Exchange ('LSE') with a Standard Listing, which the Company hopes to update
shareholders further on in the near future.

 

 

**ENDS**

 

For more information please contact:

 

Cindrigo Holdings
Limited
info@cindrigo.com

Lars Guldstrand
CEO
+44 (0) 7408 861 667

 

St Brides Partners Ltd
(PR)
cindrigo@stbridespartners.co.uk (mailto:cindrigo@stbridespartners.co.uk)

Catherine Leftley, Charlotte
Page
+44 (0) 2072 361 177

 

 

 

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