23 Apr 2018 07:00
23 April 2018
Origo Partners plc("Origo" or the "Company")
Repayment of Outstanding Debt and Asset Sale
Origo's Board of Directors is pleased to announce that the Company has repaid the US$2.5 million loan that the Company entered into on 5 December 2016 by repaying the US$2.5 million principal amount of the loan in full satisfaction of the obligation with no interest or penalty payments. The terms of the loan had required the accrual of 12% annual interest with full repayment of principal and interest no later than December 2020 in an amount no less than US$3.75 million.
Origo is also pleased to announce that it has also completed the sale of a 3.5% beneficial interest in Jinan Heng Yu Environmental Protection Technology Co., Ltd. ("Heng Yu"), the operating company of Niutech Energy Ltd., to Chinese institutional and other investors, for net cash proceeds of US$2.4 million. The sale price implies a valuation of Origo's interest in Niutech in line with its carrying value as at 30 June 2017. The cash receipts from the Heng Yu disposal will be applied towards Origo's working capital requirements. Origo continues to hold a 3.7 % indirect interest in Heng Yu.
John Chapman, Chairman of Origo commented:
The repayment of the US$2.5 million loan on very advantageous terms to the Company is a major step forward in the Board's efforts to repair the Company's balance sheet so capital can be returned to shareholders. The Company is now debt free and, with the sale of the 3.5% beneficial interest in Heng Yu, has sufficient capital to meet its running costs for the foreseeable future. The Company expects that further asset sales will enable the Company to begin returning capital to shareholders.
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Ends
For further information about Origo please visit www.origoplc.com or contact:
Origo Partners plc John Chapman Chairman | IOMA House Hope Street Douglas Isle of Man IM1 1AP
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Nominated Adviser and Broker Arden Partners plc Chris Hardie Ben Cryer | +44 (0)20 7614 5900 |