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Iofina says iodine plant back on stream; agrees debt extension with senior lender

"We are grateful to Stena, our senior lender, for agreeing to the terms of the two-month extension to the repayment deadline,” said chief executive Tom Becker. “We are extremely pleased with the progress that we have made despite the delays to the process caused by the COVID-19 outbreak and we are confident that we can complete the refinancing within this extended timeframe."

Iofina PLC -

Iofina PLC (LON:IOF) said its IO#8 iodine extraction plant in the US is back on stream after the restart of supplies of source material brine, which comes from onshore oilfields.

The company said it would “explore options” to further increase supply to the plant.

In the same update, Iofina told investors that senior debt holder Stena had extended the repayment deadline on monies owed. This has been pushed to September 1 from July 1 to allow it to conclude talks with a new primary lender.

The group is expected to make a payment of just over US$3mln to cover the accrued interest and 15% of the principal.

Southern Rock Insurance Company Limited (SRICL), the firm’s junior lender, has not currently signed-off on an extension. However, Iofina said it will pay US$294,000 on the same terms as the Stena agreement.

"We are grateful to Stena, our senior lender, for agreeing to the terms of the two-month extension to the repayment deadline,” said chief executive Tom Becker.

“We are extremely pleased with the progress that we have made despite the delays to the process caused by the COVID-19 outbreak and we are confident that we can complete the refinancing within this extended timeframe."

Shares were up 9% to 18p in early trading on Friday.

   --Adds shares--

Quick facts: Iofina PLC

Price: 13.5 GBX

LSE:IOF
Market: LSE
Market Cap: £25.9 m
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