The Board of Synergia Energy has entered into an up to US$700,000 loan agreement with Republic Investment Management (the 'Republic Loan') to provide funding for general working capital requirements.
Loan agreement
The Republic Loan provides Synergia with a working capital facility available in two tranches. The first tranche of $350,000 being available from 20 April 2026 can be drawn down on demand, bearing interest of 7.5% on amounts drawn-down, and repayable within 12 months from the initial draw down date. The second tranche of $350,000 will be available on a date as agreed between the Company and Republic, no earlier than 1 September 2026, with the same lending terms. The Republic Loan is being provided on an unsecured basis.
Alongside the Loan, Republic will be issued share options over ordinary shares in the Company to the value of the loan principal with an exercise price at a 10% premium over the prevailing share price at the initial draw down date of each loan tranche. These options have a term of 12 months from each loan draw down date and can be exercised to offset the loan principal amount.
Related Party Transaction
Republic has a current shareholding of 12.4% of the Company’s issued share capital and is therefore categorised as a substantial shareholder and related party of the Company pursuant to the AIM Rules for Companies.
The Loan Agreement is classified as a related party transaction pursuant to AIM Rule 13 and the Directors of the Company independent of the Republic Loan (being the full board), having consulted with SP Angel, the Company’s Nominated Advisor, consider that the terms of the Republic Loan are fair and reasonable insofar as the Company’s shareholders are concerned.
Synergia has interests in India (Cambay field) and the UK (Medway Hub CCS Project)
Source: Synergia Energy
