TIDMIOF
RNS Number : 7601R
Iofina PLC
08 July 2022
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
8 July 2022
Iofina plc
("Iofina", the "Company" or the "Group")
(LSE AIM: IOF)
Additional Loan Facilities and H1 Update
Iofina plc, manufacturers of specialty chemical products and
specialists in the exploration and production of iodine, today
announces news of additional facilities to be provided by its
banking partner to be utilised on its growth projects. The Company
also provides an update on H1 2022 iodine production.
As Iofina continues to build up its resources for further
growth, the Company has concluded an agreement with its current
lender, First Financial Bank, which provides two new term loans to
use for expansion projects, including IO#9, and extends the current
asset-based revolving line of credit for an additional two years.
These new facilities provide the Group with greater financial
flexibility to accelerate its growth plans while continuing to
maintain a low debt to EBITDA ratio. Customary covenants for these
agreements continue as agreed upon in the original debt facility
executed in September 2020. Summarised details of the new
agreements are as follows:
Term Loans
-- New $2.7 million 7-year term loan for the construction of
IO#9 plant.
- 12-month drawdown period subject to $900,000 initial
expenditure by the Company and completion of IO#9 agreements.
- Repayable by equal monthly instalments, accelerated repayments
possible at any time without penalty.
- Interest rate of 2.6% plus SOFR (1 month Secured Overnight
Financing Rate), minimum SOFR rate is 1%.
-- New $1.66 million 5-year term loan for Iofina Chemical
capital projects.
- 12-month drawdown period subject to $600,000 initial
expenditure by the Company.
- Repayable by equal monthly instalments, accelerated repayments
possible at any time without penalty.
- Interest rate of 2.5% plus SOFR, minimum SOFR rate is 1%.
Revolving Line of Credit
-- Period of existing revolving line of credit extended by two
years to 16 September 2024, with no obligation to use facility.
-- Total amount available adjusted to $6 million from $8 million
and carries an interest rate of 2.4% plus SOFR, minimum SOFR rate
is 1%.
-- Iofina is currently not utilizing this line of credit.
Additionally, the excess cash flow payment in the original
September 2020 term loan originally due 30 June 2022 has been
waived to provide additional flexibility for the Group.
H1 2022 update
During the first half of the year, Iofina Resources produced
234.0 metric tonnes ("MT") of crystalline iodine from its five
operating IOsorb(R) plants in Oklahoma, in line with its projected
range of 225-240 MT. The production at our existing five IOsorb(R)
plants is proceeding as expected. The management team expects H2
crystalline iodine production from its current five plants to be in
the range of 255-275 MT.
As recently highlighted, spot iodine prices have reached and
exceeded $70/kg and demand for Iofina's crystalline iodine and
derivative chemical products continues to be strong. Despite the
wider economic concerns, iodine market fundamentals continue to be
favourable and the Company expects the positive momentum to be
maintained through the second half of the year. The Company also
notes that progress is being made in terms of its negotiations for
IO#9 and will announce further updates on this as soon as
possible.
Commenting, President and CEO Dr. Tom Becker, said: "Being
granted these new low-cost loans underlines the health of the
business and the strength of our balance sheet. By combining these
facilities with our existing cash resources, Iofina has the
flexibility to accelerate its growth plans, with the aim of moving
quickly to develop additional iodine production as soon as the
agreement for IO#9 is finalised. At the same time, we want to
invest in Iofina Chemical to support the development of new niche
products, which plays to our strength as a highly versatile
chemicals manufacturer. We are appreciative of our strong
partnership with First Financial Bank in order to continue to
execute Iofina's strategic plan."
Enquiries:
Dr. Tom Becker
CEO & President
Iofina plc
Tel: +44 (0)20 3006 3135
Christopher Raggett/Tim Harper (Corporate Finance)
Tim Redfern/Barney Hayward (ECM)
Graham Cooke/Alistair Hay/Krishan Raval (Debt Advisory)
finnCap Ltd
Tel: +44 (0)20 7220 0500
Kingsley Wilson
Chrystal Capital Partners LLP
Tel: +44 (0)20 7850 4761
Media Contact:
Charles Goodwin/Laurie Gellhorn
Yellow Jersey PR Limited
Tel: +44 (0)7747 788 221
About Iofina:
www.iofina.com
Iofina plc (AIM: IOF) is a vertically integrated Company that
specialises in the production of Iodine and the manufacturing of
specialty chemical products. Iofina is the second largest producer
of iodine in North America and operates the manufacturing entities
Iofina Resources and Iofina Chemical.
LEI: 213800QDMFYVRJYYTQ84
ISIN: GB00B2QL5C79
Iofina Resources
Iofina Resources develops, builds, owns and operates iodine
extraction plants using Iofina's WET(R) IOsorb(R) technology.
Iofina currently operates five producing IOsorb(R) plants in
Oklahoma and is consistently using technology and innovation to
improve and expand its operations.
Iofina Chemical
Iofina Chemical has manufactured high quality halogen specialty
chemicals derived from raw iodine, as well as non-iodine based
products for over 38 years.
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