REG - Iofina PLC - Additional Loan Facilities and H1 Update

IofinaAnnouncement

08/07/2022 07:00

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RNS Number : 7601R  Iofina PLC  08 July 2022

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014

 

8 July 2022

 

Iofina plc

("Iofina", the "Company" or the "Group")

(LSE AIM: IOF)

 

Additional Loan Facilities and H1 Update

 

Iofina plc, manufacturers of specialty chemical products and specialists in
the exploration and production of iodine, today announces news of additional
facilities to be provided by its banking partner to be utilised on its growth
projects. The Company also provides an update on H1 2022 iodine production.

 

As Iofina continues to build up its resources for further growth, the Company
has concluded an agreement with its current lender, First Financial Bank,
which provides two new term loans to use for expansion projects, including
IO#9, and extends the current asset-based revolving line of credit for an
additional two years. These new facilities provide the Group with greater
financial flexibility to accelerate its growth plans while continuing to
maintain a low debt to EBITDA ratio. Customary covenants for these agreements
continue as agreed upon in the original debt facility executed in September
2020.  Summarised details of the new agreements are as follows:

 

Term Loans

 

§ New $2.7 million 7-year term loan for the construction of IO#9 plant.

-  12-month drawdown period subject to $900,000 initial expenditure by the
Company and completion of IO#9 agreements.

-  Repayable by equal monthly instalments, accelerated repayments possible at
any time without penalty.

-  Interest rate of 2.6% plus SOFR (1 month Secured Overnight Financing
Rate), minimum SOFR rate is 1%.

 

§ New $1.66 million 5-year term loan for Iofina Chemical capital projects.

-  12-month drawdown period subject to $600,000 initial expenditure by the
Company.

-  Repayable by equal monthly instalments, accelerated repayments possible at
any time without penalty.

-  Interest rate of 2.5% plus SOFR, minimum SOFR rate is 1%.

 

Revolving Line of Credit

 

§ Period of existing revolving line of credit extended by two years to 16
September 2024, with no obligation to use facility.

§ Total amount available adjusted to $6 million from $8 million and carries
an interest rate of 2.4% plus SOFR, minimum SOFR rate is 1%.

§ Iofina is currently not utilizing this line of credit.

 

Additionally, the excess cash flow payment in the original September 2020 term
loan originally due 30 June 2022 has been waived to provide additional
flexibility for the Group.

 

 

H1 2022 update

 

During the first half of the year, Iofina Resources produced 234.0 metric
tonnes ("MT") of crystalline iodine from its five operating IOsorb® plants in
Oklahoma, in line with its projected range of 225-240 MT. The production at
our existing five IOsorb® plants is proceeding as expected.  The management
team expects H2 crystalline iodine production from its current five plants to
be in the range of 255-275 MT.

 

As recently highlighted, spot iodine prices have reached and exceeded $70/kg
and demand for Iofina's crystalline iodine and derivative chemical products
continues to be strong. Despite the wider economic concerns, iodine market
fundamentals continue to be favourable and the Company expects the positive
momentum to be maintained through the second half of the year. The Company
also notes that progress is being made in terms of its negotiations for IO#9
and will announce further updates on this as soon as possible.

 

Commenting, President and CEO Dr. Tom Becker, said: "Being granted these new
low-cost loans underlines the health of the business and the strength of our
balance sheet. By combining these facilities with our existing cash resources,
Iofina has the flexibility to accelerate its growth plans, with the aim of
moving quickly to develop additional iodine production as soon as the
agreement for IO#9 is finalised. At the same time, we want to invest in Iofina
Chemical to support the development of new niche products, which plays to our
strength as a highly versatile chemicals manufacturer.  We are appreciative
of our strong partnership with First Financial Bank in order to continue to
execute Iofina's strategic plan."

 

 

Enquiries:

 

Dr. Tom Becker

CEO & President

Iofina plc

Tel: +44 (0)20 3006 3135

 

Christopher Raggett/Tim Harper (Corporate Finance)

Tim Redfern/Barney Hayward (ECM)

Graham Cooke/Alistair Hay/Krishan Raval (Debt Advisory)

finnCap Ltd

Tel: +44 (0)20 7220 0500

 

Kingsley Wilson

Chrystal Capital Partners LLP

Tel: +44 (0)20 7850 4761

 

Media Contact:

Charles Goodwin/Laurie Gellhorn

Yellow Jersey PR Limited

Tel: +44 (0)7747 788 221

About Iofina:

www.iofina.com (http://www.iofina.com)

 

Iofina plc (AIM: IOF) is a vertically integrated Company that specialises in
the production of Iodine and the manufacturing of specialty chemical products.
Iofina is the second largest producer of iodine in North America and operates
the manufacturing entities Iofina Resources and Iofina Chemical.

 

LEI: 213800QDMFYVRJYYTQ84

ISIN: GB00B2QL5C79

 

 

Iofina Resources

Iofina Resources develops, builds, owns and operates iodine extraction plants
using Iofina's WET® IOsorb® technology. Iofina currently operates five
producing IOsorb® plants in Oklahoma and is consistently using technology and
innovation to improve and expand its operations.

 

Iofina Chemical

Iofina Chemical has manufactured high quality halogen specialty chemicals
derived from raw iodine, as well as non-iodine based products for over 38
years.

 

 

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