REG - Eco Buildings Group - €2.2 Million Contract Signed and £300,000 CLN

Focus XploreAnnouncement

04/09/2025 07:00

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RNS Number : 9326X  Eco Buildings Group PLC  04 September 2025

4th September 2025

Eco Buildings Group PLC

("Eco Buildings" or the "Company")

 

€2.2 Million Contract Signed and £300,000 Convertible Loan Note Issue to an
existing shareholder.

Highlights

●      €2.2 million contract signed for construction of a luxury
18-unit apartment block

●      Construction will commence immediately

●      A further 5 identical structures in the pipeline

●      A £300,000 zero coupon convertible loan note at 4p has been
issued to an existing shareholder to fund the initial contract

Eco Buildings Group plc, a UK-listed modular construction company, is
delighted to announce the award of a new contract to construct a luxury
low-rise apartment block comprising 18 single dwellings, each averaging 100
square meters. Following the construction of this first apartment block, the
Company has a letter of intent in place to build another two identical
apartment blocks in Q1-Q2 next year. Negotiations are ongoing to then build a
further 3 apartment blocks once the initial three are built.

 

The Eco Buildings' Board believes this will serve as a precursor to a larger
villa development in Albania, which the Board hopes will commence upon
completion of these 6 apartment blocks.

 

Each apartment block is anticipated to generate €2.2 million in revenue,
with anticipated gross margins consistent as those previously reported by the
Company of 40%.

 

The Directors believe that Eco Building's innovative technology has enabled
the Company to secure this contract by delivering a significantly more
affordable solution compared to traditional wall construction, thereby saving
the developer substantial time and costs. Each apartment block is expected to
be completed and ready for handover within 6-9 months of the construction
start date. Building of the first luxury apartment block will commence
immediately.

Convertible Loan Note Issue

Eco Buildings Group plc has raised £300,000 through the issuance of a zero
coupon, 2-year loan note, convertible at 4 pence per share (the "Note") to
provide additional working capital to service the contract to build the first
apartment block.

 

The Note, which has been subscribed for by Frazer Lang, an existing investor
in the Company, is convertible at any time, at the election of the Note
holder, during its 24 month term into new ordinary shares in the Company at a
price of 4 pence per share. No interest is payable on the Note.

 

The conversion price of 4 pence per share compares favourably to the 30-day
volume weighted average price (VWAP) of 3.75 pence, representing a premium of
approximately 6.67%.

 

Any shares issued as a result of conversion of the Note will have a six
month lock-in period.

 

The Company has also agreed to issue Warrants as part of the Note on a basis
of 1 Warrant for every 2  Shares issued. The Warrants may be exercised at a
price of 8p and are exercisable at any time up to the third anniversary of the
date of this announcement at which time they will lapse.

 

Commenting, Etrur Albani Executive Vice Chairman of Eco Buildings Group plc,
said:

 

"This contract represents the first phase of a premier luxury development in
Tirana, It highlights the superior quality of our factory-produced products
and reaffirms our strategic decision to establish operations in Albania.

 

The new funding from Frazer Lang, a long-standing and supportive shareholder,
will enable us to capitalize on the surging demand fuelled by Albania's
flourishing construction industry."

 

Commenting, Frazer Lang said: "Having recently visited Eco's production site
in Albania, I am deeply impressed by the team's expertise and the disruptive
potential of their technology to revolutionize the construction industry. This
funding will enable the Company to accelerate growth and capitalize on
exciting opportunities, such as this landmark apartment development, amid
Albania's booming construction sector."

 

About Eco Buildings Group plc

Eco Buildings is a leading innovator in prefabricated, green housing products,
leveraging proven technology based on GFRG panels. Our modular housing
solutions cater to both affordable and high-end housing markets, combining
cost efficiency, speed of construction, and sustainability. With a growing
portfolio of international projects, Eco Buildings is dedicated to redefining
construction for the future.

Further information is available on the Eco Buildings
website: www.eco-buildings.net (http://www.eco-buildings.net/)

 

For more information, contact:

 Eco Buildings Group plc                               Tel: +44 (0) 207 380 0999

 Fiona Hadfield, Finance Director

 Spark Advisory Partners Limited (Nominated Adviser)   Tel:  +44 (0) 203 368 3550

 Matt Davis / James Keeshan
 Tavira Securities Limited (joint Broker)              Tel:  +44 (0) 203 192 1739

 Oliver Stansfield / Jonathan Evans

CMC Capital Markets (joint Broker).
                         Tel: +44 (0) 203 003 8632

Douglas Crippen

Notes

The Company has acquired proven and innovative prefabricated technology, which
has been in development and commercial use since 2006. Eco Buildings' range of
prefabricated, green housing products based on glass fibre reinforced gypsum
walls ("GFRG") provides a construction solution for both affordable and
high-end housing.

Eco Buildings has already secured two sales contracts with major construction
companies, one in Albania, the other in Kosovo, which are expected to generate
gross sales revenue of approximately up to €38 million in total per annum
over the first three years (approximately €114 million in total) following
Admission.

The market share for factory-based building technology is expected to grow
significantly over the coming years as private developers and the public
sector seek to address the substantial and growing deficit in housing stock
and issues of construction cost, speed and quality and housing affordability.

 

 

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