Loan Extension

RNS Number : 2566F

Proton Power Systems PLC

16 May 2017

 

16 May 2017

Proton Power Systems plc

("Proton" or the "Company")

Loan Extension

Proton Power Systems plc (AIM: PPS), the designer, developer and producer of fuel cells and fuel cell electric hybrid systems, announces that it has successfully agreed an extension of the payment terms on four existing loan facilities with Mr Falih Nahab and his holding company, Roundstone Properties Limited ("Roundstone"), and also to increase one of these facilities from €20 million to €28 million.

Mr Falih Nahab is the principal shareholder in Proton, through Roundstone, and is the brother of Mr Faiz Nahab, the Company's CEO.

The Company has three loans outstanding with Roundstone with maturity dates June 2018, May 2019 and September 2019 for a total of €18.9 million. Of these three loans, the interest on the loans with maturity dates of May and September 2019 currently amounts to €6.02 million and is convertible at 2 pence per share. The interest on the €28 million loan facility mentioned above between the Company and Mr Falih Nahab is also convertible at 2 pence per share and has a maturity date of March 2019.

Under the revised terms, all existing loans with Roundstone and the increased facility with Mr Falih Nahab will incur 10% interest per annum and will be repayable on 31 December 2019. The interest payable on the loans (but not the principal) may be satisfied either by the issue of new shares at 2 pence per share or in cash at the option of the lenders. The increased facility will be used to satisfy the Company's working capital needs. Including the increased facility, the total amount of interest bearing debt owing to Mr Falih Nahab and Roundstone by the Company is €46.9m.

Related Party Transaction

Mr Falih Nahab is, indirectly via Roundstone, a substantial shareholder (as defined in the AIM Rules) of the Company. The entering into of the loan agreements with Mr Falih Nahab and Roundstone are therefore classified as transactions with related parties for the purposes of the AIM Rules. In accordance, therefore, with the AIM Rules, the directors of the Company, with the exclusion of Mr Faiz Nahab, who is Mr Falih Nahab's brother, having consulted with the Company's nominated adviser, Stockdale Securities Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

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For further information:

Proton Power Systems plc
Dr Faiz Nahab, CEO
Ian Peden, Chairman	Tel: [phone]
	www.protonpowersystems.com

Stockdale Securities Limited Nominated adviser and broker	Tel: [phone]
Antonio Bossi / David Coaten	www.stockdalesecurities.com

About Proton Motor Fuel Cell GmbH

Proton Motor is an expert in Power Solutions using CleanTech technologies like industrial fuel cells, fuel cell and hybrid systems with more than 20 years of experience in this sector.  Based in Puchheim near Munich, Proton Motor offers complete fuel cell and hybrid systems from a single source - from the development and production through the implementation of customized solutions.  The focus of Proton Motor is on back-to-base, for example, for mobile, marine and stationary solutions applications.  The product portfolio consists of base-fuel cell systems, standard complete systems, as well as customized systems.

Proton Motor serves IT, Telecoms, public infrastructure and healthcare customers in Germany, Europe and Middle East with power supply solutions for DC and AC power demand. In addition to power supply, SPower also offers solutions for Solar Systems as well as a new product line for Solar Energy Storage.

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

 

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