REG - Corcel PLC - Debt Refinancing

CorcelAnnouncement

31/10/2022 16:15

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RNS Number : 7909E  Corcel PLC  31 October 2022

Corcel PLC

("Corcel" or the "Company")

 

Debt Refinancing

31 October 2022

 

Corcel, the natural resource exploration and development company with
interests in battery metals and flexible energy generation and storage
announces it has agreed with the lenders of the funding arrangements (the
"Existing Debt") announced on 21 February 2022 (the "Lenders") to refinance
its outstanding obligations originally due 31 October 2022.

The Lenders, following discussions with the board of Corcel, have confirmed
their continued support for Corcel, including the recently announced proposed
PNG restructuring and introduction of a cornerstone investor. To enable Corcel
to free up further capital for its immediate operational and capital
commitments, the Lenders have agreed to restructure the Existing Debt on a
pari passu basis to facilitate this, and the strategy of Corcel more
generally.

The Company has agreed with its Lenders to make a £150,000 immediate
repayment with the residual balance of £627,600 being deferred to 31 March
2023.  The Company has further agreed a refinancing fee of £77,760 to be
paid by 23 December 2022 in new ordinary shares of the Company to be priced at
the lowest VWAP of the Company's shares ("Strike Price") as traded between 31
October 2022 and 20 December 2022.  The Lenders will have the right to
convert any outstanding balances into equity at the Strike Price between 20
December 2022 and 31 March 2023.   The outstanding balances will accrue a
monthly coupon of 1%.

The Company has further agreed to a series of potential accelerated repayment
scenarios in the event of asset sales for cash or new equity placings before
the balance of the loan amounts falling due.

The Company has the option on 20 December 2022 to either (a) pay a fee of
£475,000 in aggregate to the Lenders or (b) extend 112,500,000 of existing
warrants currently allowing purchase of new ordinary shares at a price of
£0.004 until 20 February 2024, to an extended term where they remain
exercisable until 31 March 2025, with a related resettability clause
associated with these warrants to also be extended until 31 December 2023.
The resettability clause outlines that the subscription price of the warrants
shall adjust if the Company raises greater than £50,000 at a price lower than
£0.004 and that the total number of warrants shall be recalculated such that
the total value of the warrants remains the same.

James Parsons, Executive Chairman of Corcel noted:

"Having entered into extensive discussions with the Lenders, including further
presentation of the ongoing plans and strategy for the Company, myself and the
board are pleased to be able to continue to work with Align and RiverFort for
the furtherance of the short- and longer-term objectives for Corcel. During
these challenging times in global and domestic markets, the continued support
of our key stakeholders, such as the Lenders and the previously announced
cornerstone investor, is seen as a testament to the work that is ongoing and
which lays ahead and myself and the board are grateful for their continued
support now, and historically."

 

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

Patrick d'Ancona  0207 3900
230
                       Vigo Communications IR

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement via a Regulatory Information Service, this
inside information is now considered to be in the public domain.

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