LONDON (Alliance News) - REACT Energy PLC Wednesday said it has amended the terms of the loan facility provided to the company by EBIOSS Energy AD for a second time in order to allow the funds to be partly used for working capital purposes.
REACT secured a three-tranche loan facility worth a total of EUR750,000 back in January and the original terms stated all of the funds had to be used to develop the company's biomass gasification projects in the UK.
REACT immediately took EUR250,000 from the facility after it was secured.
REACT then amended the terms in March to allow the second tranche of EUR250,000 to be partly used for working capital purposes as well as developing its portfolio of projects.
Since then, the company has used, in total, EUR500,000 worth of funds from that facility - EUR350,000 of which has been used for development costs and EUR150,000 for working capital purposes.
On Wednesday, the terms were amended again to allow the third tranche to also be partly used for working capital purposes. REACT said it has drawn down EUR75,000 from that tranche for working capital purposes, leaving the company with EUR175,000 left to draw down for development costs.
REACT said it had agreed with EBIOSS that all subsequent drawdowns will be made as and when required to minimise finance costs, and clarified that all other terms of the facility remain unchanged.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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