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LONDON (Alliance News) - Inspirit Energy Holdings PLC Thursday said it has secured a USD3 million debt facility to help it fund the commercialisation of the micro combined heat and power boiler it has developed and has also signed up a contractor to install and maintain the initial volumes of the boiler.
In a statement, the company said it has already drawn USD400,000 of the new USD3 million debt facility provided by YA Global Master SPV Ltd. Any drawdowns are to be repaid in twelve equal monthly amounts and carry an annual interest rate of 10%. Inspirit can choose to repay in cash or shares. The first USD400,000 is repayable at USD33,333 a month on or before May 1, 2016, plus accrued interest.
The new debt facility comes after the company recently secured a micro-financing deal of GBP350,000 to back the development of its mCHP boiler.
Inspirit has developed the boiler for the commercial and residential markets, initially in the UK. This new boiler type promises to provide heat efficiently whilst also producing electricity that can be used to power premises or even be sold back to the electricity grid.
In February, it said it had signed a letter of intent with an unnamed multinational contract manufacturing services company, and in April said it was negotiating manufacturing contracts with a view to having production quantities for trials available in June.
On Thursday, the company said the first commercial units are scheduled for delivery to major clients for testing in July, as it signed an installation and maintenance contract with Robinsons M&E Ltd.
"Their expertise and coverage will help us to understand the various requirements of our target customer group and allow us to improve the product specification in order to meet the needs of as many of the diverse market sectors that we believe the Inspirit appliance will appeal to," Inspirit Chief Executive John Gunn said in a statement.
"The company now has all the elements in place to build a significant customer base from which we can expand into future volume increases in both the home market and Europe and to make this British company's washing-machine-sized, high efficiency boiler-electricity generator available for the global market place," he added.
Inspirit said it has signed memorandums of understanding with the companies that are going to get the trial boilers to ensure that "suitable commercial discussions will take place and that Inspirit will be in a position to declare an order book of projected sales prior to larger volume production commencing".
Inspirit shares were down 6.3% at 0.600 pence Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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