RNS Number:3696R
Helius Energy Plc
02 April 2008
2 April 2008
Helius Energy PLC ('Helius' or the 'Company')
Convertible loan facility
Helius (AIM: HEGY) is pleased to announce that it has entered into a convertible loan facility (the 'Loan Facility') for £2 million with African Bi-Fuels Pty Ltd. The Loan Facility is intended to be used to provide working capital for the development of the Company's business plan.
This facility has been secured to mitigate any risks of delay with commencement of construction and therefore receipt of development fees which will be used to fund the development of subsequent biomass power generation plants in the UK. The facility provides in excess of 12 months working capital.
The Loan Facility can be drawn down in tranches from June 2008 until December 2008, the Company will pay an interest charge of 1 per cent. per month on funds drawn and funds drawn will be due for repayment by April 2009.
The Loan Facility is convertible, in proportion to the amount actually drawn down and not repaid, at the lender's discretion at any time prior to one year from date of signing into up to 9,090,910 new Helius ordinary shares of 1 pence each representing approximately 11.3 per cent. of the enlarged share capital of Helius after conversion.
Related Party Transaction
The Loan Facility is being provided by African Bi-Fuels Pty Ltd, a company controlled by Mr Demetri Pappadopoulos. Mr Demetri Pappadopoulos is a director of Helius and the entering into the Loan Facility agreement therefore constitutes a transaction with a related party under the AIM Rules.
The Directors of Helius, other than Demetri Pappadopoulos, consider, having consulted with Arbuthnot Securities Limited, that the terms of the Loan Facility are fair and reasonable so far as the Helius shareholders are concerned.
General Meeting
A circular convening a General Meeting of the Company will be sent to Shareholders shortly outlining the terms of the Loan Facility and seeking Shareholder approval to, inter alia, enable the Directors to allot, if necessary, the new Ordinary Shares pursuant to the conversion of the Loan Facility.
Shareholders representing more than 75 per cent. of the Company's share capital have irrevocably agreed to vote in favour of the resolutions being proposed at the General Meeting.
For further details contact:
John Seed, Managing Director Helius Energy plc 01642 438 540
Tom Griffiths, Antonio Bossi Arbuthnot Securities 020 7012 2000
Ken Cronin, Robert Speed,
Kate Hill Gavin Anderson & Company 020 7554 1400
This information is provided by RNS The company news service from the London Stock Exchange
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