Pressure Technologies Plc - Disposal of equity holding in Greenlane Renewables
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Pressure Technologies plc
("Pressure Technologies" or the "Group")
Disposal of entire equity security holding in Greenlane Renewables Inc.
The board of Pressure Technologies plc ("PT") is pleased to announce the execution of a Framework Agreement with Greenlane Renewables Inc. ("Greenlane"), Creation Partners LLP ("Creation") and Brad Douville (the "Framework Agreement"). Further details are available under Greenlane's SEDAR profile and can be accessed via this link. Link to SEDAR .
Following the execution of the Framework Agreement PT sold a total of 7,663,920 common shares and the underlying common shares of 5,094,765 share purchase warrants (the "PT Securities"). The PT Securities were issued to PT in connection with the disposal of its wholly owned subsidiary PT Biogas Holdings Limited (the "Disposal"). The Group expects to receive net proceeds of approximately £2.5 million upon settlement of the sale which, together with the sale of 2,525,610 shares on 10 June 2020, means Pressure Technologies will have realised cash proceeds of approximately £3.1 million.
Through the Framework Agreement, Greenlane's outstanding principal on the promissory note to PT (the "Promissory Note") will be reduced to approximately £3.1 million and the maturity date will be advanced from June 3, 2023 to June 30, 2021.
Pursuant to the terms of the Framework Agreement, PT has also agreed to transfer the balance of its securities in Greenlane following the sale, being 4,093,230 Greenlane common shares and 2,046,615 warrants, to Creation and Mr. Douville, which were previously held in escrow for their benefit pending repayment of the Promissory Note. Upon completion of these transactions, PT will no longer be the owner of any equity securities of Greenlane.
The total cash received to date of the £10.1 million total consideration on Disposal is approximately £7.3 million. The proceeds of the recent sales will be used to pay down the Group's existing debt.