Amendment and repayment of Prolific facility

RNS Number : 4115C
Scirocco Energy PLC
11 October 2022
 

11 October 2022

Scirocco Energy plc

("Scirocco Energy" or "the Company")

 

Amendment and repayment of Prolific facility

 

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, is pleased to announce an amendment to, and repayment schedule for, the investment facility (the "Facility") with Prolific Basins LLC, a U.S.-based investor ("Prolific").

Utilising available cash resources, strengthened by the first cash instalment received from ARA Petroleum Tanzania Limited ("APT") under the loan agreement associated with Ruvuma disposal agreement (details on which have been previously announced), Scirocco has agreed to pay, in the coming days, $200,000 to part settle the outstanding balance of the Prolific Facility, with the remaining balance of $245,000 to be paid in five equal monthly instalments of $49,000 each over the months of November 2022 to March 2023 inclusive. Provided that the Company complies with this repayment schedule, Prolific has also agreed not to request share issuances under the Facility.

Tom Reynolds, Scirocco Energy CEO commented "We are pleased to have amended the terms of the facility to enable the full settlement of the Facility without issuing further Scirocco shares. This amendment also enables the Company to retain cash flexibility in the short term.  The Facility served as a vital source of capital to retain the Company's interest in Ruvuma through the sales process, and now that the Company has a clear line of sight to completion of the divestment of that interest we are accelerating the final settlement.

Scirocco is pleased to have Prolific's continued support during a challenging time in the global markets, Prolific's investment served as an important bridge in Scirocco's cash flow requirements, and Prolific has acted as a supportive and responsible corporate citizen during its tenure as an investor in Scirocco.

Following receipt of the first funds associated with the APT loan agreement, Scirocco is in a significantly more secure financial position, which enables the Company to pay down this facility.  Crucially, as we pursue completion with APT, the Company is no longer exposed to cash calls associated with Ruvuma providing clarity on the use of funds and the ability to pursue further investment in EAG and other platforms which meet the Company's investment criteria. "

 

For further information:

Scirocco Energy plc

Tom Reynolds, CEO

Doug Rycroft, COO

+44 (0) 20 7466 5000

 

Strand Hanson Limited, Nominated Adviser

James Spinney / Ritchie Balmer / Rob ert Collins

 

+44 (0) 20 7409 3494

 

 

WH Ireland Limited, Broker

Harry Ansell / Katy Mitchell  

 

+44 (0) 0207 220 1666

 

 

Buchanan, Financial PR

Ben Romney / Jon Krinks

 

 

+44 (0) 20 7466 5000

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCFFWEFSEESEDS
UK 100