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(Sharecast News) - Energy storage specialist Invinity has entered into a prepayment agreement to repay the outstanding amount of a convertible loan facility with RiverFort Global Opportunities PCC and YA II PN, it announced on Friday.
The AIM-traded company said the loan facility, which had an initial advance of $2.5m, was announced in December 2022, with $2.08m still outstanding.
As part of the repayment agreement, the note holders waived restrictions on prepaying the initial advance, and Invinity agreed to settle the outstanding amount and a redemption premium of 10%, or $208,107.53, subject to a placing and open offer being completed.
In exchange, Invinity said it had agreed to grant a further 449,980 warrants at an exercise price of 32p.
The firm said it would use its existing cash resources to repay the loan, but would not release the funds until completion of a placing and open offer.
Invinity's board said it was "comfortable" with its current working capital position, with a minimum placing of £16m being sufficient to meet its working capital requirements through the first half of 2024.
If the placing and open offer did not complete by 30 April, a break fee would be paid to the note holders in shares at a price equivalent to the average daily volume-weighted average for the five days prior.
"Entering into the facility in December supported the significant order backlog and considerable near-term commercial interest Invinity has attracted," said chief development officer and interim finance chief Jonathan Marren.
"This facility has been an important bridge to the recently announced equity funding through the placing, open offer and strategic investment.
"We look forward to repaying the facility and convey our appreciation to Riverfort and YA for assisting Invinity during this period."
At 1258 GMT, shares in Invinity Energy Systems were up 0.31% at 32.1p.
Reporting by Josh White for Sharecast.com.
