Symphony Environmental Technologies Plc (LON:SYM), global specialists in technologies that make plastic and rubber products “smarter, safer and sustainable”, has announced receipt of a convertible loan from Sea Pearl Ventures Limited, based in the Bahamas. Key terms of the Loan are:
· Loan principal: £1 million (unsecured)
· If not repaid before expiration, conversion at 1 year and 30 days (no earlier)
· Conversion price: 80% of the volume-weighted average share price for the 3 months prior to conversion at 1 year and 30 days
· Interest: 7% per annum, payable as accrued on repayment and/or conversion
· Symphony able to repay the loan in full or in part before conversion at its discretion
The proceeds of the Loan will be used to strengthen the Group’s cash position for ongoing working capital purposes and will further support the Group to deliver on its many commercial opportunities during the year.
Sea Pearl is currently interested in 17.4% of Symphony’s issued share capital and is therefore considered a substantial shareholder under the AIM Rules. Being a substantial shareholder, provision of the Loan is considered to be a related party transaction under the AIM Rules for Companies. The board of directors of the Company consider, having consulted with the Company’s nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company’s shareholders are concerned.
EU Case Hearing Date
The Group advises that a hearing date at the General Court of the EU in Luxembourg has been set for 20 March 2023. The legal action is for financial damages against the Commission, Parliament and Council of the EU having been advised by three specialists in EU law that Article 5 of the EU Directive 2019/904 is unconstitutional. The date of the judgment is not known, but the Company is advised by its legal advisors that it is expected to be delivered 12 to 15 months after the hearing, and without prior notice.
2022 Revenue Update
Group revenue for the financial year ended 31 December 2022 (“FY-22”) is now expected to be £6.2 million, being lower than the £6.5 million previously indicated. This is purely a consequence of timing differences over the year end with final shipment consignments (for revenue recognition purposes), primarily of deliveries from the new plant in the Middle East, falling into January 2023. The foregone contribution from these sales will also impact losses reported in FY-22. However, the new plant has been operating well and in line with management expectations during this first quarter of 2023.
Michael Laurier, CEO of Symphony, commented;
“We are pleased with the continuing support from Sea Pearl as demonstrated through the provision of this £1 million convertible loan. We have an extensive pipeline of exciting projects which this money will help progress.”