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REG - Proton Motor Power - Variation to Loan Agreement

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RNS Number : 0134U  Proton Motor Power Systems PLC  26 June 2024

 

     26 June 2024

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 an update on its existing loan facility with
Mr. Falih Nahab (the "Falih Nahab Facility").

 

On 20 June 2023, the Company announced that it had increased the size of the
Falih Nahab Facility by €14.5 million, to approximately €71.4 million, to
provide the Company with the funding to meet its anticipated working capital
requirements for the 12 months to June 2024.

 

The Company has today entered into a variation to the Falih Nahab Facility to
increase the facility by a further €6.1 million, to €77.5 million, (plus
accrued interest of €21.2 million as at end May 2024). The facility has
consistently enabled the Company to progress the development and
commercialization of its hydrogen product offer, without the need to issue
further equity.  The additional €6.1 million of loan funding made available
pursuant to the variation was advanced to the Company by Mr. Falih Nahab
between February and June 2024 and was necessitated by the decision to
accelerate payments on sums due to contractors for the new production
facility, together with a delayed receipt of a payment due from a customer.

 

Since 1 January 2022, the annual interest rate on the Falih Nahab Facility has
remained at 12 months EURIBOR + 3%.  The annual interest charge accrued on
the Falih Nahab Facility for the period commencing 1 January 2023 can be
settled once or twice yearly by way of issue of ordinary shares of 0.5 pence
each of Proton Motor Power Systems PLC (the "Ordinary Shares") to Mr. Falih
Nahab with such shares being issued at the prevailing market price of an
Ordinary Share at the time of issue and subject to there being no closed
period at the time of issue.

 

The principal amount and accrued interest on the Falih Nahab Facility that is
not converted into equity (as set out above) are repayable on 31 December
2025. All other terms to 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.

 

It is anticipated that the Company will be required to increase its existing
loan facilities further, or enter into a new facility, in order to provide the
Company with the funding to cover its anticipated working capital requirements
for the next 12 months. The Company is currently in discussions with Mr. Falih
Nahab in relation to a new loan facility and a further announcement will be
made in due course.

 

Related Party Transaction

Mr. Falih Nahab is a substantial shareholder (as defined in the AIM Rules for
Companies). The variation to the Falih Nahab Facility is therefore classified
as 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 Mr. 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                                             +49 (0) 173 189 0923

 Dr Faiz Nahab, CEO

 Ali Naini, Chairman

 Roman Kotlarzewski, CFO

 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                                                            +44 (0) 20 3328 5656
 Limited

 Nominated Adviser & Broker

 James Reeve / Vivek Bhardwaj

 Celicourt Communications                                                    +44 (0) 20 7770 6424 / protonmotor@celicourt.uk

 PR Adviser

 Mark Antelme / Philip Dennis /

 Charlie Denley-Myerson

 

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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