REG - Coro Energy PLC - Convertible Loan Increase and Vietnam Update

Coro EnergyAnnouncement

06/11/2024 07:00

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RNS Number : 0550L  Coro Energy PLC  06 November 2024

6 November 2024

 

Coro Energy Plc

("Coro" or the "Company" and together with its subsidiaries the "Group")

 

Convertible Loan Increase and Vietnam Update

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, announces, further to the Company's announcements of
15 August 2024 and 27 August 2024, an increase to the previously announced
convertible loan and further positive developments at its C&I rooftop
solar business in Vietnam.

 

Convertible Loan Increase

 

As previously announced on 15 August 2024 and 27 August 2024, the Company
previously entered and drew down a six month US$500,000 secured convertible
loan note (the "Original Loan"), which is repayable in cash at the discretion
of the Company and matures on 14 February 2025.

 

The Company today announces a US$250,000 increase to and draw down of the
Original Loan, increasing the total Loan to US$750,000 (the "Increased Loan"
or the "Loan"). The maturity date of the Increased Loan remains unchanged and,
should the Company decide not to repay in cash or default on the Loan, then
the lenders can decide to either exercise their security or convert, together
with accrued interest, into such number of new ordinary shares of the Company
as is the higher of: (a) an unchanged 946,063,400 ordinary shares in the
Company per the original Loan terms; and (b) such number of new ordinary
shares calculated by dividing the total amount drawn down under the Loan by
the price per ordinary share at which the Company may raise equity funds prior
to 14 February 2025.  The Loan attracts an annualised coupon of 40% (20% for
the six month term), payable on the amount of the Increased Loan drawn down,
and is secured on the shares of Coro Asia Renewables Limited and Coro Clean
Energy Limited, the holding companies for the Company's renewables businesses.

 

The Additional Loan has been provided by Fenikso Limited ("Fenikso").  Tom
Richardson, Chairman of the Company, is a director of Fenikso, and therefore
the Additional Loan is considered to be a related party transaction pursuant
to Rule 13 of the AIM Rules for Companies.

 

The independent director of the Company, Harry Beamish, considers, having
consulted with the Company's nominated adviser, that the terms of Additional
the Loan are fair and reasonable insofar as the Company's shareholders are
concerned.

 

Vietnam C&I Rooftop Solar Update

 

Today the Company is delighted to announce that 27 further sites (circa 0.8MW)
are now operational and revenue generating.

 

By way of background and as previously announced on 10 October 2023, the
Company  signed a Memorandum of Understanding ("MoU") in Vietnam with Mobile
World Group ("MWG") granting Coro exclusivity on an initial 900 company sites
(estimated at 50MW of rooftop solar capacity) in the central and southern
regions of Vietnam where solar irradiation is the highest in the country.
 Coro will build, own, and operate each rooftop solar system and sell all
generated electricity directly to each Mobile World Investment Corporation
location under a 14-year Power Purchase Agreement, extendable in certain
circumstances.

 

The Power Purchase Agreement ("PPA") was signed on 8 March 2024 with an
addendum covering the first ten sites (c 0.4MW) as a pilot phase.  These ten
sites were announced as operational on 30 July 2024.   The Company then
signed an additional addendum covering the next 30 sites on 27 August 2024.
The Company is delighted to report today that 27 (circa 0.8MW) of these 30
sites are now operational and revenue generating (the remaining three sites
having been temporarily deferred for operational reasons). This brings the
current total operational sites with MWG in Vietnam to 37 sites (circa 1.2MW)
as of today's date.

 

The Company signed a further addendum covering a further 50 sites (c 1.9MW) on
25 September 2024 which are currently under construction and are expected to
become operational during November.  All addendums are consistent with those
announced previously whereby the term is extendable in certain circumstances
and includes a variable price with a floor of circa US$11.2 cents / kilowatt
hour.

 

 

Tom Richardson, Chairman, commented:

 

"This additional financing ensures the Company can maintain progress with the
Mobile World Group project in Vietnam whilst we continue to work towards a
longer term solution with our debt holders."

 

 

For further information please contact:

 

 Coro Energy plc                                          Via Vigo Consulting Ltd

 Cavendish Capital Markets Limited (Nominated Adviser)    Tel: 44 (0)20 7220 0500

 Adrian Hadden

 Ben Jeynes

 Hybridan LLP (Nominated Broker)                            Tel: 44 (0)20 3764 2341

 Claire Louise Noyce

 Vigo Consulting (IR/PR Advisor)                          Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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