Last checked at 8 Jan 2016 07:00
8 January 2016
REACT Energy plc
("REACT" or the "Company")
Project development loan facility
REACT, the renewable energy developer and operator focusing on the production of clean energy in the UK and Ireland, announces that it has secured a €750,000 loan facility (the "Facility") from EBIOSS Energy AD ("EBIOSS").
The Company will use the proceeds from the Facility for the continuing investment in its portfolio of biomass gasification projects in the UK.
The key terms of the Facility are as follows:
· quantum of €750,000, which may be drawn down in three equal monthly instalments of €250,000, with the first €250,000 expected to be drawn down on 8 January 2016;
· interest rate of 8% per annum on outstanding capital balances, which will accrue and be repaid in full on repayment of the Facility;
· proceeds from the Facility, which is unsecured, will be used solely to fund development costs associated with the Company's identified biomass gasification projects in the UK;
· drawdown of the Facility will be subject to the agreement of the Company and EBIOSS; and
· from 7 January 2017, EBIOSS may, at any time, demand that the Company repays the drawn down proportion of the Facility plus accrued interest. The Company may, at any time, elect to repay the Facility plus accrued interest.
The Company also announces that it has granted EQTEC Iberia, a subsidiary of EBIOSS, exclusivity to provide gasification technology as part of Engineer Procure and Construct ("EPC") contracts for its biomass gasification project pipeline in the UK. As previously announced Newry Biomass Limited, a 50.01% subsidiary of the Company, has entered into an agreement with EBIOSS to purchase its EQTEC Integrated Biomass Gasification Power Plant, which will, subject to securing the necessary financing, be used in the repowering of the Newry Biomass gasification project.
For further information:
REACT Energy plc Gerry Madden / Brendan Halpin | +353 (0)21 2409 056 |
Strand Hanson Limited - Nomad & Broker James Harris / Richard Tulloch / Ritchie Balmer | +44 (0)20 7409 3494 |
About REACT:
REACT Energy plc is committed to operating clean electricity and heat generation plants in the UK and Ireland. The Company seeks to identify, build, own and operate renewable projects and possesses significant knowledge of energy markets, clean technologies, fuel sources, project development, project finance and project delivery. REACT currently has four operational clean energy plants generating revenue from the sale of electricity and heat. The generation of clean electricity and heat from sustainable sources has the potential to address the key energy challenges of energy security and carbon commitment and provide strong returns on capital employed.
The Company is quoted on AIM and trades as REAC. Further information on the Company can be found at www.reactenergyplc.com.
About EBIOSS:
EBIOSS Energy, AD is an industrial engineering group and is involved in the engineering, construction, project development and operation of waste-to-synthesis gas plants. It operates at an international level and owns a state of the art technology and differential positioning in designing and construction of waste gasification power plants with power capacity from 500 kW to 10 MW. EBIOSS has developed its own technology, the EQTEC Gasifier Technology (EGT) by which different types of waste are transformed into synthesis gas. This leading technology on waste gasification has made possible the design construction and/or operation of waste gasification plants in Spain, France, Germany, India, Italy and Bulgaria among other countries, for third party international energy groups and for use by EBIOSS itself.
EBIOSS is quoted on MAB the alternative market of the Spanish Stock Exchanges and trades as MAB:EBI. Further information on EBIOSS can be found at www.ebioss.com.