LONDON – Oneiro Energy plc (LSE:ONE), a company listed on the London Stock Exchange (LON:) and focusing on energy transition, has announced an agreement to raise £275,000 in loan funding. The capital is earmarked to bolster the company’s working capital requirements as it moves forward with its intended acquisition of Switch (NYSE:) Metals Côte d’Ivoire Sarl.
The loan funds are to be drawn down immediately and are set to be repaid by the earlier of two dates: either upon the completion of the acquisition and associated fundraising or twelve months from the loan agreement date. The loan attracts a fixed interest rate of 10%, repayable on the repayment date.
Oneiro has raised £200,000 of the total loan through the issuance of convertible loan notes to existing shareholders. These notes may be converted into new ordinary shares at the lenders’ discretion upon the company’s admission to the exchange following the acquisition. The conversion price is set to match the issue price of new shares issued during the fundraising.
Additionally, the convertible loan note lenders will receive warrants for new ordinary shares at the admission, calculated based on the issue price and exercisable at a 50% premium to that price. Should the lenders opt to convert their notes at admission, they will be entitled to additional warrants on par with any attached to the fundraising.
The remaining £75,000 of the loan funding has been provided via loan agreements with Andy Yeo, Oneiro’s Non-Executive Chairman, and Karl Akueson, CEO of Switch Metals and proposed CEO of the enlarged group post-acquisition. Their loans match the terms of the convertible loan notes, excluding conversion provisions and the right to receive warrants due to MAR regulations.
The loans from Yeo and Akueson are considered related party transactions and have been approved by the board, with Yeo recusing himself from the vote. The loan agreements with both individuals are expected to be amended before admission to align with the terms of the convertible loan notes.
The news of this financial maneuver comes as Oneiro continues to progress with its acquisition of Switch Metals, which focuses on mining exploration for battery minerals and technology metals in Côte d’Ivoire. Further updates for shareholders are anticipated early in the new year.
This report is based on a press release statement from Oneiro Energy plc.
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