REG - Corcel PLC - Debt Restructuring and Sale

CorcelAnnouncement

14/12/2021 07:00

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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.

 

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