30 August 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (MARKET ABUSE REGULATION)
Corre Energy B.V.
("Corre Energy" and the "Company")
Shareholder loan facility agreement and interim board of directors
The Company, a leading developer of underground energy storage projects in Europe, announces that it has successfully concluded a loan facility for up to €5 million (the "Facility") with a group of existing significant shareholders being Stream Street Limited, Air Corre Limited, Springhill Property Investments (Jersey) Limited and Pageant Investments Limited (the "Lenders"). The purpose of the Facility is to provide immediate funding to the Company for ongoing operating expenses, working capital and capital expenditures in existing projects.
They key terms of the Facility are:
· Term loan facility of up to €5 million available to be drawn down for one year
· The Company may make the following drawings under the Facility:
o €450,000 upon signing
o Up to €950,000 on 30th August (subject to the approval of an interim Board of Directors (see below))
o At any time thereafter with approval from the Board of Directors of the Company
· Maturity date: 30th June 2028
· Interest rate: 0% per annum
· Repayment schedule: In full on maturity date
· Conversion: After an initial six month lock up period, subject to the required shareholder approval, the amount drawn down can be converted into ordinary shares of the Company at a value of 2x the outstanding loan amount. Conversion price is €0.10 per share
· Shares may be converted during the lock up period in the case of a liquidity event i.e. successful completion of Rothschild managed investment process, or event of default
· The Facility will be treated as senior debt and rank pari passu with existing senior debt
The group of significant shareholders, named above, providing this loan comprise long-term financial investors representing 33%* of the share capital of the Company.
Existing shareholders who come forward will be offered the opportunity to participate on a similar basis according to the terms of this Facility subject to a minimum qualifying investment of €100,000.
Additionally, a new interim board of directors will be appointed to enhance governance, strategy and operations with a focus on maximising shareholder value. The board will include representatives of key shareholders, alongside independent directors with relevant industry and financial expertise. Details on the proposed appointees and the corresponding Extraordinary General Meeting ("EGM") documents will be made available as soon as practicable. The EGM agenda will also include the specific authorisation of the board of directors for granting the rights to convert this loan, in accordance with the Facility.
The interim board, alongside the executive management team, will conduct an immediate operational review to unlock the Company's intrinsic value and boost shareholder returns. A key priority of this review will be to significantly reduce operating costs.
The Company believes that the Facility, new interim board, and cost reduction programme, will enhance shareholder returns and support a successful conclusion of the investment process led by Rothschild, aligning with its vision to build a sustainable and flexible energy system in Europe.
The Company will provide further updates on its progress and performance.
*This percentage shareholding is based on shares in issue of 77,607,348 ordinary shares.
For further information, please contact:
Corre Energy B.V.
ir@corre.energy or +31 (0) 50 799 5060
Davy (Euronext Growth Listing Sponsor)
Anthony Farrell Davy Corporate Finance
anthony.farrell@davy.ie or +353 (0)1 6149993
Murray Group
Pat Walsh
pwalsh@murraygroup.ie or + 353 87 226 9345
ABOUT CORRE ENERGY: Corre Energy designs, develops, constructs, and operates utility-scale Long Duration Energy Storage projects in Europe and North America. Through our project development activities, Corre Energy is working to accelerate the energy transition to net zero, while enhancing the security and flexibility of large-scale energy systems.
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