Hydrogen Utopia International PLC (LSE:HUI, OTCQB:HUIPF) chief executive Aleksandra Binkowska has drawn down the first tranche of a personal loan facility that is intended to eliminate the need for a discounted dilutive equity fundraising.
The company, which specialises in turning non-recyclable waste plastic into hydrogen or distributed heat, told investors that a first tranche of £500,000 will be drawn down from the non-recourse personal loan facility of up to £3 million.
Binkowska intends to support HUI's working capital needs with the proceeds of this personal loan in the short to medium term, the company said, for which she has pledged as security over 50,000,000 ordinary shares representing 12.97% of her 42.32% shareholding.
The facility has a term of five years but can be repaid after two, and upon redemption, the pledged shares must be returned, the company said, adding that the other members of the board have considered and agreed to the arrangements.
"HUI is not just another lifestyle PLC. For me, it is a personal calling, driven by my deep belief in the necessity and profitability of this technology," said Binkowska.
She added that she is "fully committed to ensuring HUI never falls into a dilemma of heavily discounted fundraises. To that end, I have stepped in to personally provide HUI with the necessary financial support, through a personal lending facility structured to minimise the risk of my shares leaking onto the market in any way, as they will remain in my name."
She said the funds will allow HUI to continue on its path to build the first plastic-to-hydrogen facility, with the assistance of future revenue from the acquisition of 49% of Ohrid Organics.