Amendment of the project development loan facility

RNS Number : 8833B

React Energy PLC

22 June 2016

 

22 June 2016

REACT Energy plc

("REACT" or the "Company")

Amendment of the project development loan facility

On 8 January 2016 REACT, the renewable energy developer and operator focusing on the production of clean energy in the UK and Ireland, announced that it had secured a €750,000 loan facility (the "Facility") from EBIOSS Energy AD ("EBIOSS").

The terms of the Facility stated that the Company would use the proceeds of the Facility solely to fund the development costs associated with the Company's identified biomass gasification projects in the UK.  The terms of the Facility were amended, as announced on 16 March 2916, such that the proceeds from the second tranche, amounting to, in aggregate, €250,000, to be drawn down by the Company could be used for the working capital needs of the Company as well as for project development costs, at the sole discretion of the Company.

To date the Company has drawn down €500,000 under the Facility, comprising €350,000 for project development costs associated with the Company's identified biomass gasification projects in the UK and €150,000 for working capital needs of the Company.

The parties to the Facility have agreed to further amend the terms of the Facility, such that the proceeds from the third tranche, amounting to, in aggregate, €250,000, to be drawn down by the Company can now be used for the working capital needs of the Company as well as for project development costs.  Following the amendment, the Company has drawn down €75,000 of the third tranche, which will be used for the working capital needs of the Company, with a further €175,000 available to be used for project development costs.  The parties have agreed that all subsequent drawdowns will be made as and when required to minimise finance costs.

All other terms of the Facility remain the same.

For further information:

REACT Energy plc Gerry Madden / Brendan Halpin	[phone]
Strand Hanson Limited - Nomad & Broker James Harris / Richard Tulloch / Ritchie Balmer	[phone]

About REACT:

REACT Energy plc is committed to operating clean electricity and heat generation plants in the UK and Ireland. The Company seeks to identify, build, own and operate renewable projects and possesses significant knowledge of energy markets, clean technologies, fuel sources, project development, project finance and project delivery. REACT currently has four operational clean energy plants generating revenue from the sale of electricity and heat. The generation of clean electricity and heat from sustainable sources has the potential to address the key energy challenges of energy security and carbon commitment and provide strong returns on capital employed.

The Company is quoted on AIM and trades as REAC. Further information on the Company can be found at www.reactenergyplc.com.

 

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