27th Aug 2024 12:24
(Alliance News) - Hydrogen Utopia International PLC on Tuesday said it will draw the first tranche of a personal loan secured against part of Chief Executive Officer Aleksandra Binkowska's shareholding in the company.
The London-based company specialises in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels.
Binkowska will draw down a first tranche of GBP500,000 under a non-recourse personal loan facility of up to GBP3.0 million. She will use the loan proceeds to support Hydrogen Utopia's working capital needs.
For the loan Binkowska pledged security over 50.0 million ordinary shares representing just under 13% of her 42% shareholding in the capital of Hydrogen Utopia.
The facility has a term of five years and can be repaid after two years. Upon redemption, all of the pledged shares must be returned.
Binkowska said: "I understand that many of you, fellow investors, share concerns about the current market conditions - I feel them deeply. I want to reassure you that I am fully committed to ensuring HUI never falls into a dilemma of heavily discounted fundraises.
"To that end, I have stepped in to personally provide HUI with the necessary financial support, through a personal lending facility structured to minimise the risk of my shares leaking onto the market in any way, as they will remain in my name. This facility eliminates the need for any heavily discounted dilutive actions that have become a common theme in small-cap companies."
Funding will be put towards the construction of the company's first plastic-to-hydrogen facility.
Hydrogen Utopia shares were up 5.3% at 5.00 pence each in London on Tuesday.
By Elijah Dale, Alliance News reporter
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