LONDON - Coro Energy PLC, a South East Asian energy company, has announced plans for a comprehensive recapitalization aimed at positioning itself as a debt-free regional clean energy developer. The initiative includes an equity fundraising, a share capital reorganization, and a restructuring of the company's existing secured bonds.
The company is seeking to raise approximately £2 million through equity fundraising, with £1.9 million already conditionally committed by investors. This effort is coupled with a share capital reorganization, consolidating existing ordinary shares and subdividing them into new ordinary and deferred shares. This reorganization is subject to shareholder approval at a general meeting expected to take place on or before February 26, 2025.
The net proceeds from the equity fundraising, along with the company's cash on hand, are intended to repay its existing convertible loan, support the development of renewable energy projects, particularly in Vietnam, and cover general and administrative expenses for the Duyung PSC.
Coro Energy is also addressing its outstanding bonds by proposing a redemption and conversion strategy. The proposal includes repaying 75% of the principal amount of the bonds along with all accrued interest and converting the remaining principal into new ordinary shares. The bondholders, holding approximately 68% of the principal, have agreed to support the proposal, which is also conditional on shareholder approval and admission to trading on the AIM market of the London Stock Exchange (LON:LSEG).
If shareholders do not support the recapitalization, the company may face winding up, which would likely result in shareholders not seeing any return on their investment.
In Vietnam, Coro has completed a 3-megawatt solar project and is considering divesting this asset to fund other high-margin projects and repay a loan from its EPC contractor in Vietnam. Additionally, the company has signed a Power Purchase Agreement with Mobile World Group and is rolling out solar sites, with the intention to monetize developed sites to finance future developments.
Coro is also advancing its utility-scale solar and wind projects in the Philippines and awaits the outcome of a farm down process in Indonesia, where it holds a 15% interest in the Duyung Production Sharing Contract.
The company's chairman, Tom Richardson, expressed gratitude to lenders, shareholders, and new investors for their support of the recapitalization plan, emphasizing the importance of shareholder approval at the upcoming General Meeting.
This article is based on a press release statement from Coro Energy PLC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.