Coal and energy company Kibo Energy has settled all outstanding amounts due under the convertible loan note (CLN) announced on June 25, and has reached agreement with the holders of the CLN to terminate the CLN with immediate effect.
Moreover, the company has undertaken a successful placing to raise £1.45-million before costs through its broker ETX Capital.
Over the course of the past months, the company has been able to significantly advance the development of its project portfolio with specific reference to its utility-scale projects in Mozambique and the expansion of its portfolio of emergency power projects in the UK.
Proceeds from the placing will be used to bring the company to a point where it expects to finalise two power purchase agreements in Mozambique before the end of this year for an aggregate offtake of about 350 MW; as well as complete a successful initial public offering of its emergency power portfolio in the UK, with two emergency power sites to be in production by the end of this year.
"We believe this latest investment is a strong endorsement of the company's value proposition and strategy.
"The company finds itself in a very exciting period, specifically in as far as the development of its projects in Mozambique and the UK are concerned, where we expect to reach very significant milestones soon.
"These are all events that hold the potential to materially transform Kibo, with the prospect of first revenue generation in the near term, as one of the most exciting of these prospects,” says CEO Louis Coetzee.
He adds that the outlook of having two signed PPAs bythe end of the year for an offtake in aggregate of about 350 MW will in its own right have a material impact.
“We are also particularly pleased to have received support from our two biggest shareholders for the placing and restructuring of the company’s funding arrangements and both have, once again, reassured Kibo of their continued support and firm belief in Kibo and its strategy,” he says.