US SBA loan approved

RNS Number : 6473J

Velocys PLC

15 April 2020

 

News Release

Velocys plc

("Velocys" or "the company")

15 April 2020

US SBA  loan  approved

Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce the approval of a $709,000 loan from the Pay-check Protection Program awarded by the Small Business Administration (SBA), a US Federal Agency. 

The SBA program is part of the Federal stimulus package known as the CARES (Coronavirus Aid, Relief and Economic Security) Act to offer help to small businesses in the USA during the Covid-19 crisis. 

This unsecured loan has been awarded to support Velocys' US payroll costs in the short-term. It is an unsecured loan with a 2-year maturity and 0.98% interest.  No interest or principal payments are due in the first six months. The loan is however eligible for "forgiveness", becoming non-repayable upon application by Velocys after 60 days from receipt if used for retaining US employees and maintaining US payroll costs of at least this amount in the period until the end of June 2020.  Velocys is confident that it will meet the criteria for this "forgiveness".

Velocys expects to draw down on the loan shortly.

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For further information, please contact:

Velocys Henrik Wareborn, CEO Andrew Morris, CFO Lak Siriwardene, Head of Communications & Sustainability	[phone]
Numis Securities (Nomad and joint broker) Stuart Skinner Emily Morris Alamgir Ahmed	[phone]
Canaccord Genuity (Joint broker) Henry Fitzgerald-O'Connor James Asensio	[phone]
Radnor Capital (Investor relations) Joshua Cryer Iain Daly	[phone]
Field Consulting (PR) Robert Jeffery	[phone]

Notes to Editors

Velocys is an international UK-based sustainable fuels technology company. Velocys designed, developed and now licences proprietary Fischer-Tropsch technology for the generation of clean, low carbon, synthetic drop-in aviation and transport fuel from municipal solid waste and waste woody biomass.

Velocys is currently developing projects in Natchez, Mississippi, USA (incorporating Carbon Capture Use and Storage) and Immingham, UK to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport. Originally a spin-out from Oxford University, in 2008 the company acquired a US company based on complementary technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.

www.velocys.com

 

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