REG - Proton Motor Power - Variation to Loan Agreement

Proton Motor Power SystemsAnnouncement

20/06/2023 07:00

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RNS Number : 2188D  Proton Motor Power Systems PLC  20 June 2023

20 June 2023

 

Proton Motor Power Systems plc

("Proton" or the "Company")

 

Variation to Loan Agreement

 

Proton Motor Power Systems plc (AIM: PPS), the designer, developer and
producer of fuel cells and fuel cell electric hybrid systems with a zero
carbon footprint, announces that it has agreed to a variation to its existing
loan facility with Mr. Falih Nahab (the "Falih Nahab Facility").

 

Pursuant to the loan variation, the Falih Nahab Facility has been increased by
approximately €14.5 million to approximately €71.4 million (plus accrued
interest of €16.4 million as at end May 2023). In addition, the Company has
agreed with Falih Nahab that all interest accrued under the Falih Nahab
Facility from 1 January 2023 onwards will be satisfied via the issue of new
ordinary shares of 0.5p each in the Company ("Ordinary Shares"). These new
Ordinary Shares will be issued to Falih Nahab either once or twice yearly in
February and/or July of each year. The issue price will be the market price of
an Ordinary Share at the time of issue.

 

The annual interest rate on the Falih Nahab Facility remains at 12 months
EURIBOR + 3% and the principal amount and accrued interest on the Falih Nahab
Facility remains repayable on 31 December 2025. All other terms of the Falih
Nahab Facility remain unchanged, as do the terms of the existing loan
facilities between SFN Cleantech Investment Limited ("SFN") and the Company,
and SFN and SPower, a subsidiary of Proton.

 

The undrawn portion of the Falih Nahab Facility is expected to allow the
Company to satisfy its working capital needs until at least June 2024.
However, it should be noted that the Company does not currently expect to
generate net free cash by that time and therefore may require additional
funding for its future working capital needs.

 

Related Party Transaction

Falih Nahab is a substantial shareholder of the Company (as defined in the AIM
Rules for Companies). The variation to the Falih Nahab Facility, as set out
above, is therefore classified as a transaction with a related party for the
purposes of the AIM Rules for Companies. The directors of the Company, with
the exclusion of Dr. Faiz Nahab, the Company's Chief Executive, who is the
brother of Falih Nahab, having consulted with the Company's nominated adviser,
Allenby Capital Limited, consider that the changes to the Falih Nahab Facility
are fair and reasonable insofar as the Company's shareholders are concerned.

 

For further information:

 

 Proton Motor Power Systems Plc
 Dr Faiz Nahab, CEO
 Helmut Gierse, Chairman
 Roman Kotlarzewski, CFO                                                         +49 (0) 173 189 0923
 Antonio Bossi, Non-Executive Director
 Investor relations:                                                             www.protonpowersystems.com (http://www.protonpowersystems.com)
 investor-relations@proton-motor.de (mailto:investor-relations@proton-motor.de)

 Allenby Capital Limited
 Nominated Adviser & Broker                                                      +44 (0) 20 3328 5656
 James Reeve / Vivek Bhardwaj

 Celicourt Communications
 PR Adviser
 Mark Antelme / Philip Dennis                                                    +44 (0) 20 8434 2643

 

 

About Proton Motor Fuel Cell GmbH

 

Proton Motor has 25 years of experience in Power Solutions using CleanTech
technologies such as hydrogen fuel cells, fuel cell and hybrid systems with a
zero carbon footprint. Based in Puchheim near Munich, Proton Motor develops
and produces standard Products as well as customised solutions.  The focus of
Proton Motor is on stationary solutions, as well as mobile, marine and rail
applications.  The product portfolio consists of base-fuel cell systems,
standard complete, as well as customised systems.

 

Proton Motor Fuel Cell GmbH is a wholly owned subsidiary of Proton Motor Power
Systems plc. The Company has been quoted on the AIM market of the London Stock
Exchange since October 2006 (code: PPS).

 

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