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Share Name Share Symbol Market Type Share ISIN Share Description
Echo Energy Plc LSE:ECHO London Ordinary Share GB00BF0YPG76 ORD 0.25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.01 -1.87% 0.525 0.50 0.55 0.535 0.515 0.535 1,573,269 13:02:06
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 11.1 -15.3 -2.0 - 7

Echo Energy PLC Successful Loan Restructuring

01/10/2021 7:00am

UK Regulatory (RNS & others)


Echo Energy (LSE:ECHO)
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TIDMECHO

RNS Number : 6481N

Echo Energy PLC

01 October 2021

1 October 2021

Echo Energy plc

("Echo" or the "Company")

Successful Loan Restructuring

Echo Energy, the Latin American focused upstream oil and gas company, is pleased to announce that it has successfully agreed the restructuring of the Company's GBP1.0 million loan originally provided to the Company in March 2017 and now held by Spartan Class O (the "Lender"), a sub-fund of Spartan Fund Limited SAC (the "Loan") with the Lender.

The terms of the amendment to the Loan (the "Amendment") are as follows:

-- Maturity extended by 2 years such that the then outstanding remaining principal and accumulated accrued interest will mature on 8 March 2024 ("Maturity") following four quarterly cash prepayments of GBP25,000 commencing on 31 March 2023.

-- Interest reduction such that all Loan interest will be accrued and paid on Maturity at a reduced rate of 8% per annum from Amendment (previously 12% per annum) on outstanding principal on a non-compounding basis.

-- 15% of the remaining GBP850,000 Loan principal, representing GBP127,500, has now been converted into 10,200,000 new Echo ordinary shares (the "Conversion Shares") at an effective issue price of 1.25p - a premium of 108% to the closing mid market price per Echo ordinary share on 30 September 2021.

-- Conversion Shares to be locked-in for a period of 6 months from Admission (as defined below).

Prior to the Amendment the full Loan, together with interest, had been due to mature on 8 March 2022 - with quarterly cash repayments of GBP50,000 prior to that maturity date.

In connection with the Amendment, the Lender has been issued with 3,096,429 warrants to subscribe for new ordinary shares in the Company at a price of 0.7 pence per new ordinary share, exercisable from the date of grant and with an expiry date of 30 September 2022.

Application has been made for the Conversion Shares, which rank pari passu with the Company's existing ordinary shares, to be admitted to trading on AIM. It is expected that admission of the Conversion Shares, will occur at 8.00 a.m. on 7 October ("Admission").

Following Admission, the Company's issued ordinary share capital will comprise 1,309,013,085 Ordinary Shares, none of which are held in treasury. Therefore, following Admission, the total number of ordinary shares with voting rights in the Company will be 1,309,013,085 which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Martin Hull, Chief Executive Officer of Echo Energy, commented:

"The successful restructuring of the loan represents an important and positive step for the business as we continue to make great progress in 2021 both commercially and operationally. It materially reduces the near term cash outflow by delaying maturity whilst additionally reducing ongoing debt servicing costs, further strengthening our financial platform. These steps free additional resources to support our ongoing strategy of reinvestment in rapid payback production growth opportunities at a time of commodity price strength, reinforced by our attractively priced gas contracts. By investing in Echo at a more than 100% premium to the prevailing share price and agreeing to the lock up period, not only are the Lenders strengthening the balance sheet but also demonstrating confidence in the business and its strategy. "

For further information, please contact:

 
Echo Energy                             via Vigo Communications 
 Martin Hull, Chief Executive Officer 
Vigo Consulting (IR & PR Advisor) 
 Patrick d'Ancona 
 Chris McMahon                             +44 (0) 20 7390 0230 
Cenkos Securities (Nominated Adviser) 
 Ben Jeynes 
 Katy Birkin                               +44 (0) 20 7397 8900 
Shore Capital (Corporate Broker) 
 Jerry Keen                                +44 (0) 20 7408 4090 
 

Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

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October 01, 2021 02:00 ET (06:00 GMT)

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