LONDON (Alliance News) - REACT Energy PLC on Monday said it has drawn down a further EUR100,000 under its existing loan facility, with the funds to be used to continue its development of biomass gasification projects in the UK.
REACT secured a EUR750,000 loan facility from EBIOSS Energy AD in January, and the proceeds were earmarked to fund development costs of the company's biomass gasification projects in the UK.
REACT then drew down EUR250,000 of that facility, and in March said it had struck a deal to allow the second EUR250,000 tranche to be used for working capital as well as for project development costs, at the discretion of the company.
At the time, the company said it had drawn down EUR150,000 of that second tranche, to be used for working capital, and said the other EUR100,000 of the second tranche could be used for whatever purpose it required.
On Monday, REACT said it has drawn down the remaining EUR100,000 of the second tranche, which it said will "be used to fund project development costs".
The final EUR250,000 available under the facility can be used for project development costs, REACT said, and it has agreed with EBIOSS that "all subsequent drawdowns will be made as and when required to minimise finance costs".
Shares in REACT were flat at 4.25 pence on Monday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
