3rd Jul 2020 13:58
(Alliance News) - Pressure Technologies PLC on Friday said it has sold its entire stake in Greenlane Renewables Inc and expects to receive around GBP2.5 million.
The sale was part of a framework agreement between Pressure Tech, Greenlane, Creation Partners LLP, and Greenlane Chief Executive Brad Douville.
Pressure Tech sold 7.7 million total common shares and 5.1 million warrants, which has been issued to the company in connection with disposal of its PT Biogas Holdings Ltd subsidiary.
The Sheffield-headquartered company, which makes safety-critical components expects to receive around GBP2.5 million of net proceeds from the sale. Together with the 2.5 million shares sold on June 10, Pressure Tech will have realised around GBP3.1 million of cash.
Through the framework agreement, Greenlane's outstanding principal on the promissory note to Pressure Tech will be reduced to approximately GBP3.1 million with the maturity date moves to June 2023 from June 2021.
Pressure Tech has also agreed to transfer the balance of its Greenlane securities after the sale, being 4.1 million common shares and 2.0 million warrants to Creation Partners and Douville. These shares has previously been held in escrow pending promissory note repayment.
With these transactions complete, Pressure Tech will not longer hold any equity securities in Greenlane.
Pressure Tech has so far received GBP7.3 million of the GBP10.1 million total consideration for the PT Biogas subsidiary disposal. Proceeds from recent sales will go towards paying down Pressure Tech's existing debt.
Shares in Pressure Tech were up 3.0% at 81.89 pence in London on Friday afternoon.
By Anna Farley; [email protected]
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