REG - Ondo InsurTech PLC - Vendor Loan Note restructuring

Ondo InsurTechAnnouncement

25/11/2024 07:00

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RNS Number : 4919N  Ondo InsurTech PLC  25 November 2024

The information contained in this announcement is deemed by the Company to
constitute Inside Information as stipulated under the Market Abuse Regulations
(Regulation 596/2014/EU) as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018

25 November 2024

Ondo InsurTech Plc

("Ondo" or the "Company")

 

Vendor Loan Note restructuring

 

Ondo Insurtech (LSE: ONDO), a leading company in claims prevention technology
for home insurers, is pleased to announce the rescheduling of vendor loan
notes issued by Ondo ("Loan Notes") to its largest shareholder, HomeServe
Assistance Limited ("HomeServe").

 

The Loan Notes form part of the consideration for the acquisition of the
LeakBot business from HomeServe as set out in the prospectus dated 21 March
2022.

 

The Loan Notes remain redeemable by Ondo at any time with 10 days' notice and
are rescheduled as follows:

 

·      Loan Note term extended: New maturity date one year later on 31
March 2030

·      Principal repayments deferred: Commencing one year later on 31
March 2027 and then annually to 31 March 2030

·      Interest roll-up extended: Accruing an additional year to 31
March 2026

·      Interest rate maintained: At 12% until 31 March 2027 increasing
to 14% thereafter.

 

Ondo has committed to a minimum of 40% of the proceeds from any warrant
exercises being used to repay the Loan Notes.

 

As of 30 September 2024, and as at the current date, a total of 26.94m
warrants remain outstanding, with a subscription value of up to approx. £6
million, as set out in the table below.

 

 

 No of warrants  Exercise price  Subscription Value  Expiry date
 13,612,088      25p             £3,403,022          21 March 2025
 8,140,000       20p             £1,628,000          28 July 2025
 5,191,669       20p             £1,038,334          22 May 2026
 26,943,757                      £6,069,356

 

 

 

Mark Wood CBE. Chairman of Ondo InsurTech Plc says: "Across the UK,
Scandinavia and the USA some 5.7m households now have policies with insurers
implementing LeakBot.  Our accelerating rollout now across eighteen states in
the United States is funded by advance pre-payments of the first twelve months
fees. Projecting the revenues from our current contracts reaffirm our
expectation in achieving EBITDA positive trading in the second half of next
year without the need for further working capital funding.

 

The rescheduling of our Vendor Loan Notes has been structured to enable us to
meet our obligations to the Loan Note holders from future trading revenues. We
appreciate HomeServe's continued support in enabling these revised terms,
which position Ondo for continued success."

 

 

 

 

 

Enquiries

 

For further information, please visit (http://www.ondoplc.com) www.ondoplc.com
(http://www.ondoplc.com)   or contact the following:

 

 Ondo InsurTech Plc                 Craig Foster, CEO       +44 (0) 800 783 9866

                                    Kevin Withington, CFO
 Dowgate Capital Ltd                Russell Cook            +44 (0) 20 3903 7715

 (Broker & Financial Advisor)       Nick Chambers

                                    Charlie Hall
 Cassiopeia Services Ltd            Stefania Barbaglio      +44 (0) 7949 690338

 (PR & Investor Relations)

About Ondo InsurTech PLC

 

Ondo is a world leading provider of claims prevention technology for home
insurers. Ondo's focus is on the global scale-up of LeakBot - claims
prevention technology that prevents water damage claims in houses. Water
damage is the single biggest cause of home insurance claims, accounting for
$17bn of claims every year in the USA and UK combined. LeakBot is a patented
self-install solution that connects to the home wireless network and, if it
detects a leak, notifies the customer via the LeakBot mobile app, and provides
access to a team of expert LeakBot engineers to 'find and fix' the problem.
Independent research by Consumer Intelligence found LeakBot can reduce the
cost of water damage claims by up to 70%.

 

LeakBot partners with 20 insurance carriers - including Nationwide, Admiral,
Direct Line Group, Hiscox, Länsförsäkringar and TopDanmark - both in Europe
and the USA.

 

Ondo holds the coveted London Stock Exchange Green Economy Mark awarded to
companies who derive the majority of their income from green activities.

 

For more information, visit www.ondoplc.com (http://www.ondoplc.com/)

 

 

 

 

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