Fenikso Ltd on Friday announced that it has made its first investments as part of a new strategy while it continues to receive loan repayments from Lekoil & Gas Investments.
The investor in Nigerian oil and gas assets said one of the investments includes a convertible loan note agreement with Coro Energy PLC, a South East Asian energy company with a natural gas and clean energy portfolio.
Under the $500,000 secured convertible loan note agreement announced Thursday, Fenikso and existing Coro investor River Merchant Capital will each provide up to $250,000 with which Coro will fund its renewables business and use for general working capital purposes. The loan has a 20% coupon for the six month term and is secured by shares in Coro Asia Renewables Ltd, the holding company for the company’s renewables business in the Philippines.
Should it decide, the loan may be converted into shares in the company.
Coro said ‘the loan is critical to the group’s ability to continue to meet its obligations to its creditors and protect the value of its renewables business’.
The loan note agreement serves as the first of a new series of investments Fenikso has committed to undertake as it receives repayments from a $51.9 million loan provided to Lekoil & Gas Investments in December 2022 as part of its restructuring plan.
Fenikso on Thursday announced that it received a payment of $838,538, putting the remaining balance at $40.1 million.
Fenikso will use the funds in order to repay its own loan from Savannah Energy Investments Ltd, which has an outstanding balance of $12.7 million, as well as to build up its cash base.
Following its payment to Savannah Energy, Fenikso expects to have above $5.5 million in cash.
As per regulatory requirements, Coro and Fenikso have been required to report the involvement of Tom Richardson, a non-executive director of Coro Energy and Chairman of Fenikso.
Fenikso Ltd shares closed up 19% at 1.43 pence in London on Friday.
Coro Energy shares closed flat at 0.14 pence.
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