12th Aug 2022 18:01
Echo Energy PLC - London-based energy company focused on Latin America - Proposes placing by way of accelerated bookbuild to raise at least GBP450,000 in shares at 0.25 pence each. The issue price is around a 3% discount to Thursday's closing price of 0.257p. Also proposes restructuring of existing debt, conditionally agreeing with Lombard Odier Asset Management Europe Ltd to convert its EUR5.0 million 8.0% secured convertible debt facility with LO into new shares at 0.45p each. The conversion price is a 75% premium to the closing price on Thursday, it says.
The placing proceeds will be put towards working capital, including covering expenses from the debt restructuring, as well as operating cashflow in Argentina.
"This is an important milestone for Echo, which if completed will fundamentally change the outlook for the company for the positive. By comprehensively restructuring and strengthening the balance sheet, we establish firm foundations for the business financially, from which we will be able to pursue the many opportunities that exist within our portfolio. The conditional conversion of debt into equity at a large premium by our largest single debt holder represents a vote of confidence in the company's future," says Chief Executive Officer Martin Hull.
Current stock price: 0.27p, up 5.1% on Friday in London
12-month change: down 57%
By Elizabeth Winter; [email protected]
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