LONDON (ShareCast) - (Sharecast News) - Fuel cell and electric hybrid technology developer Proton Motor Power Systems has agreed to increase each of its existing loan facilities with SFN Cleantech and Falih Nahab, it announced on Monday, by €6.25m (£5.36m) each.
The AIM-traded firm said the facility with SFN had thus been increased to €32.35m, plus accrued interest of €12.73m as at the end of May, and the loan facility with Nahab to €56.85m, plus accrued interest of €13.04m.

It said the principal amounts and accrued interest on the SFN and the Nahab facility would be repayable on 31 December 2025.

Following the waiver of the conversion rights on interest accrued, as announced on 29 December for both facilities, the company said the facilities did not have any conversion rights into ordinary shares.

From 1 January this year, the annual interest rate on each facility was amended to 12 months' EURIBOR plus 3%.

Between 1 January and 31 December 2021, the annual rate was 12 months' LIBOR plus 3%, and up to 31 December 2020, it was 10%.

All other terms remained unchanged.

"The undrawn portions of the loan facilities are expected to allow the company to satisfy its working capital needs until at least June 2023," the board said in its statement.

"However, it should be noted that the company does not currently expect to generate net free cash by that time and therefore may require additional funding for its future working capital needs."

At 1438 BST, shares in Proton Motor Power Systems were down 3.61% at 10p.

Reporting by Josh White at Sharecast.com.

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