Subico based Natural Fuel Ltd has signed a convertible facility deed with Power Knight Pte Ltd under which Power Knight will provide Natural Fuel with a loan of US$20 million.
Subico based Natural Fuel Ltd has signed a convertible facility deed with Power Knight Pte Ltd under which Power Knight will provide Natural Fuel with a loan of US$20 million.
The loan is wholly convertible into shares in Natural Fuel at a price of US$0.118 per share (A$0.13 per share) at the option of Power Knight, subject to Foreign Investment Review Board and Natural Fuel shareholder approval.
Natural Fuel Ltd is an Australian ASX-listed company which supplies biodiesel and kosher grade glycerine.
NFL's wholly owned Singapore subsidiary Natural Fuel Pte Ltd operates the company's biodiesel plant and glycerine refinery on Singapore's Jurong Island.
Through a 50/50 joint venture with Babcock & Brown Environmental Investments, NFL also owns and operates Australia's largest biodiesel facility in Darwin.
The company's announcement is pasted below:
Following on from its announcement of 27 March 2008, Natural Fuel Ltd has today signed a convertible facility deed with Power Knight Pte Ltd under which Power Knight, a member of the Risjadson group of companies based in Jakarta, will provide Natural Fuel with a loan of US$20 million.
The loan will be provided in two stages, with a first tranche of US$6 million to be drawn down by Natural Fuel within the next 2 days and a second tranche of US$14 million to be drawn down upon satisfaction of standard conditions precedent. Natural Fuel expects to receive the second draw down of US$14 million within the next few weeks.
The loan is wholly convertible into shares in Natural Fuel at a price of US$0.118 per share (A$0.13 per share) at the option of Power Knight, subject to Foreign Investment Review Board and Natural Fuel shareholder approval.
In addition to the standard lending conditions applicable to the loan, Natural Fuel must provide an Independent Engineering Report on Natural Fuel's Singapore facility.
The balance of the transaction with Power Knight announced on 27 March 2008, being a placement to Power Knight of up to 168,800,000 Natural Fuel shares at a price of US$20 million ($0.13 per share), will be subject to shareholder approval, to be sought in early June.
A notice of general meeting with respect to the approval sought for the conversion and the placement will be sent to
shareholders shortly.
