StockMarketWire.com - Proton Motor Power Systems plc has agreed to increase each of its existing loan facilities with SFN Cleantech Investment Limited and Falih Nahab by approximately €5.9 million each.

The loan facility with SFN has therefore been increased to approximately €26.1 million and the loan facility with Nahab has been increased to approximately €50.6 million.

The principal amounts of the SFN Facility and the Falih Nahab Facility are not convertible and are repayable on 31 December 2025. The interest accrued on both facilities up to and including 30 June 2020 is convertible into new ordinary shares of the company at 2p per share, whilst interest accrued beyond that date is not convertible, as set out in the company's announcement of 2 November 2020.

As from 1 January 2021 the annual interest rate on both the SFN Facility and the Falih Nahab Facility is 12 months LIBOR +3%. Up to 31 December 2020 the annual interest rate on these facilities was 10%.

In addition, the maturity of the existing non-convertible facility of €2.6 million (including interest) provided by SFN has also been extended from 31 December 2022 until 31 December 2025. The annual interest rate on this facility remains 12 months LIBOR +2%.

The undrawn portions of the loan facilities are expected to allow the company to satisfy its working capital needs until at least May 2022. However, the Proton Motor Power Systems has said it does not currently expect to generate net free cash by that time and therefore may require additional funding for future working capital needs.


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