Scirocco Energy PLC (AIM:SCIR) has amended the repayment terms of its investment facility with US-based investor Prolific Basins LLC.
The company, in a statement, said it has agreed to pay US$200,000 in the coming days to part settle the outstanding balance due to Prolific Basins, followed by five monthly payments of US$49,000 between the months of November through March.
Prolific Basins has agreed not to request the issue of shares, under the previously agreed facility, so long as this new repayment schedule is complied with.
"We are pleased to have amended the terms of the facility to enable the full settlement of the facility without issuing further Scirocco shares,” said chief executive Tom Reynolds.
“This amendment also enables the company to retain cash flexibility in the short term.
“The facility served as a vital source of capital to retain the company's interest in Ruvuma through the sales process, and now that the company has a clear line of sight to completion of the divestment of that interest we are accelerating the final settlement.”
Reynolds added: “Scirocco is pleased to have Prolific's continued support during a challenging time in the global markets, Prolific's investment served as an important bridge in Scirocco's cash flow requirements, and Prolific has acted as a supportive and responsible corporate citizen during its tenure as an investor in Scirocco.
“Following receipt of the first funds associated with the APT loan agreement, Scirocco is in a significantly more secure financial position, which enables the company to pay down this facility.
“Crucially, as we pursue completion with APT, the company is no longer exposed to cash calls associated with Ruvuma providing clarity on the use of funds and the ability to pursue further investment in EAG and other platforms which meet the company's investment criteria."