Coro Energy PLC, a South East Asian energy company, has announced the signing of a six-month US$500,000 secured convertible loan note. The loan is repayable in cash at the Company's discretion, and if not repaid, it is convertible into new Ordinary shares of the Company. The loan attracts an annualized coupon of 40% and is secured on the shares of Coro Asia Renewables Limited, the holding company for the Company's renewables business in the Philippines.
The loan has been provided by River Merchant Capital and Fenikso Limited, with each lender providing up to US$250,000. The proceeds will be utilized to fund the Group's renewables business and for general working capital purposes. The loan is critical for the Group to meet its obligations to creditors and protect the value of its renewables business.
Tom Richardson, a non-executive director of the Company, is a director of Fenikso, making Fenikso Limited's participation in the provision of the loan a related party transaction. The independent director of the Company, Harry Beamish, has deemed the terms of the loan to be fair and reasonable for the Company's shareholders.
The Company is working towards finalizing the Annual Report before the end of August and unsuspending the shares. For further information, contact details for the Company's advisors are provided.
This announcement outlines Coro Energy PLC's strategic move to secure funding for its renewables business expansion, ensuring its ability to meet obligations and protect the value of its assets.