7th Apr 2016 14:23
LONDON (Alliance News) - Proton Power Systems PLC on Thursday said it agreed the terms of a EUR20 million loan with Falih Nahab, an indirect shareholder in the AIM-listed fuel cells company through Roundstone Properties Ltd.
The loan can be drawn down until December 31, 2018 and is repayable in April 2019.
The interest rate to be paid on the loan was set at 10% per year. The interest is to be paid in the form of new shares in Proton Power, at 2.0 pence per share at the option of the lender. The principal, meaning the EUR20 million to be borrowed, is not repayable in shares.
An existing EUR10 million loan with with Nahab entered into in 2014 has been refinanced and replaced by the new borrowing facility.
The remaining EUR10 million will be used to finance Proton Power's working capital, the company said.
Roundstone owns about 93% of the company, according to Proton Power's website.
Shares in Proton Capital were down 3.7% at 3.25 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Proton Mtr Pwr