REG - Echo Energy PLC - Issue of Convertible Loan Note

Echo EnergyAnnouncement

21/12/2023 08:00

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RNS Number : 5976X  Echo Energy PLC  21 December 2023

21 December 2023

Echo Energy plc

("Echo" or the "Company")

Issue of Convertible Loan Note

Echo Energy PLC (Company), announces a £500,000 unsecured convertible loan
note funding facility (the "Facility") with a UK based alternative asset
management and investment firm (the "Investor").  The Company has drawn down
an initial £65,000 of gross proceeds under the Facility to support its
working capital requirements and immediate work programme (the "Initial
Drawdown").

Facility - Key Terms

·     The £500,000 Facility is structured as an initial tranche of
unsecured convertible loan notes of £65,000 and up to a further £435,000
available to be drawn down at any time over the next 6 months, subject to
mutual agreement between the Company and the Investor.

 

·     A 5% fee on the amount drawn down is payable to the Investor upon
each draw down.

 

·     Echo will pay the legal fees for the implementation of the
Facility, which have been capped at £15,000 and deducted from the Initial
Drawdown.

 

·     All Loan notes, once drawn, are repayable 24 months from the date
of the first draw-down. The Loan notes are zero-coupon/interest free but are
issued at 92% of Par Value.

 

·     Each tranche of the Facility is convertible into new ordinary
shares of the Company ("Ordinary Shares") at the Investor's election at any
time prior to repayment, at the lesser of: (i) 150% of the Company's closing
bid price on the trading day immediately prior to the date of draw-down of the
relevant tranche; or (ii) 90% of the lowest closing bid price in the five
trading days immediately preceding the date of conversion (the "Conversion
Price").

 

·     The loan notes are redeemable in cash by the Company, all or in
part, at Par Value at any time after draw down, or in the event of a change of
control of the Company, at 110% of Par Value. If the Company notifies the
Investor of an intended redemption of any loan notes, the Investor shall have
two trading days to elect to convert some or all of outstanding amounts or
accept the early redemption. In the event of default, loan notes will be
redeemable immediately at 110% of par value of outstanding loan notes.

 

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
Law by virtue of the European (Withdrawal) Act 2018, as amended.

For further information please contact:

 Echo Energy                                             Info@echoenergyplc.com

 Stephen Birrell, Chief Executive Officer

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

 Adrian Hadden

 Ben Jeynes

 

 

 

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