REG - i(x) Net Zero PLC - Increased Loan Facility of $11.75M

I (X) Net ZeroAnnouncement

03/11/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231103:nRSC3226Sa&default-theme=true

RNS Number : 3226S  i(x) Net Zero PLC  03 November 2023

The information contained within this Announcement is deemed by i(x) Net Zero
plc to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

 

3 November 2023

i(x) Net Zero PLC

 

("i(x) Net Zero" or the "Company")

 

Increased Loan Facility of $11.75 million

 

 

i(x) Net Zero PLC (AIM: IX.), the investing company which focuses on the
Energy Transition, is pleased to announce that that its wholly owned
subsidiary, i(X) investments LLC has entered into a restated and amended
secured two year term loan facility with European Depositary Bank
S.A. ("EDB") ("Loan") increasing its loan facility by $4.25 million
("Increased Facility Amount") from $7.5 million to $11.75 million. The Loan,
once drawn, bears interest at 10.5% coupon (subject to periodic change in line
with EDB's USD Base rate) which is payable quarterly. The Loan can be utilised
for, inter alia, the purposes of the financing of investments and general
working capital purposes. The Loan is guaranteed by the Company.

 

 Drawdown of the Loan is conditional upon there being no event of default and
other customary provisions including delivery of documents.  The Loan is
repayable together with default interest in the event of  default which,
inter alia, includes a change of control and a reduction of aggregate NAV of
the Company below $125 million and $100 million in respect of WasteFuel. Out
of the Increased Facility Amount of $4.25 million, an initial drawdown amount
of $3.0 million is subject to the fulfillment of the general terms, a
subsequent drawdown amount of an additional $1.25 million will become
available for drawdown from March 2024 and is subject to fulfilling additional
conditions, including the share price performance in the previous four months
prior to drawdown and the NAV of Wastefuel remaining above a certain
threshold.  Undrawn amounts are subject to a commitment fee and the Company
has also agreed to pay an arragement fee.

 

The Loan is secured by a pledge granted by the Company and its nominee of the
shares held by it including those in i(x) Investments LLC and all other
proceeds and property and assets owned by it. In addition, as part of the
initial Facility Agreement, i(x) Investments LLC pledged $4.0 million as a
security at a deposit account with EDB. The Company invested this security
deposit in certain money markets funds and other financial instruments and
generated a return on deposited funds (currently expected to be approximately
5-6% per annum) thereby mitigating the interest payable. In addition,
i(x) Investments LLC has undertaken to maintain a minimum cash balance in an
operating account with the amount varying depending on the remaining time to
facility maturity but being zero if draw downs total less than $4 million.

 

In connection with the facility, i(x) Investments LLC has also agreed to
give customary undertakings, warranties and indemnities to the Lender, the
Agent and Security Agent including as to tax and undertakings not to undertake
certain corporate transactions without consent.

 

Under the initial Facility Agreement the Company had drawn $2.6 million as
at 3 November 2023.

 

Pär Lindström, Chief Executive Officer of the Company, said: "The increased
loan facility will allow management to maintain its focus on scaling the
business, following the recent addition of Citron Energy to the portfolio. We
are actively looking at a number of opportunities in the green energy sector
both in and outside of the existing portfolio. We are focused on businesses
where we believe we can deploy our hands-on strategic management, resources
and infrastructure, helping to build and develop these investments into
successful contributors towards a net zero future."

 

 

- Ends -

 

 

 

For further information visit https://ixnetzero.com/
(https://url.avanan.click/v2/___https:/ixnetzero.com/___.YXAzOml4bmV0emVybzphOm86N2IwNzI5ZjFjNmRmYzY5Yjg5ODRhOGZiZWRiYWVmOTk6NjoyMjBhOjRmMGM4Yjg2ZmVkOWZiMzQwN2MwYjQ5ZDVjM2Q0N2I5ZjdmYjRmNDZmYTQ1NjM4Y2NkYTkwYmVjZGEyZTA4YWM6cDpU)
 or contact:

 i(x) Net Zero                              Via Buchanan below
 Pär Lindström - Chief Executive Officer

 Canaccord Genuity Limited                  +44 20 7523 8000

 Nominated Adviser & Broker
 Max Hartley
 Harry Pardoe

 Buchanan
 Helen Tarbet                               +44 7872 604 453
 Simon Compton                              +44 7979 497 324

 

 

Notes to Editors

About i(x) Net Zero PLC

i(x) Net Zero PLC is an AIM quoted investing company that seeks to provides
its shareholders with the opportunity to create long-term capital growth with
positive, scalable, measurable and sustainable impact on the environment and
on the communities it serves.

 

In accordance with its belief that the world's biggest problems are also the
biggest market opportunities, i(x) Net Zero focuses on two critical areas in
which it aims to make a positive impact: (i) Energy Transition and (ii)
Sustainability in the Built Environment.

 

The Company uses a multi-strategy investment approach, providing the companies
in which it invests with the expertise and catalytic capital to help them
grow. To date, i(x) Net Zero has invested in biofuels, direct air capture
(carbon removal), renewable energy, sustainable workforce housing and net zero
construction technology.

 

i(x) Net Zero is a  signatory to the UN Principles for Responsible
Investing.

 

The Company has received the London Stock Exchange's Green Economy Mark.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUOSNROBUARRA