23rd Apr 2018 13:50
LONDON (Alliance News) - Origo Partners PLC said Monday that it has repaid the USD2.5 million loan it agreed with Lars Bader in 2016.
The USD2.5 million was paid with no interest or penalty payments. The terms of the loan had required the accrual of 12% annual interest with full repayment no later than December 2020 in an amount no less than USD3.75 million.
The investment company also completed the sale of it 3.5% interest in Jinan Heng Yu Environmental Protection Technology Company Ltd - the operating company of Niutech Energy Ltd - to Chinese institutional and other investors for net cash proceeds of USD2.4 million.
The cash from the disposal will go towards Origo's working capital requirements. Origo still has a 3.7% indirect interest in Heng Yu.
Chairman John Chapman said: "The repayment of the USD2.5 million loan on very advantageous terms to the Company is a major step forward in the Board's efforts to repair the Company's balance sheet so capital can be returned to shareholders. The Company is now debt free and, with the sale of the 3.5% beneficial interest in Heng Yu, has sufficient capital to meet its running costs for the foreseeable future. The Company expects that further asset sales will enable the Company to begin returning capital to shareholders."
Shares in Origo were down 0.5% to 1.08 pence each Monday afternoon.
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