Ncondezi Energy raises $0.6m from existing lenders and management

Ncondezi Energy announced on Friday that it raised an additional $582,000 from existing lenders and senior management, to be used to fund its new partner search and to provide working capital for the group.

The AIM-traded firm said a $350,000 loan had been committed from existing shareholder loan holders, repayable at a multiple of 1.25x, while a $232,000 loan had been committed by Ncondezi senior management, repayable at a multiple of 1.0x.

Both loans would accede to the terms and conditions of the existing shareholder loan, the board confirmed.

The new loans would provide funding to progress the company’s new partner search, as well as to repay outstanding invoices and salaries.

Ncondezi said its new partner search was “progressing as planned”, with an update expected in July.

“The new partner search formally commenced in early June, and the company is encouraged by the quality of the participants to date, which represent a broad set of well-known international names as well as proven regional players,” the board said in a statement.

“Whilst the initial results are encouraging, there can be no certainty that the partner search process will be successful.

“The process remains on track to provide an update to shareholders in July.”

Ncondezi Energy confirmed it intended to release its full year results for the year to 31 December 2016 on 30 June, subject to board approval.