Shares in Corre Energy, the embattled renewable energy storage developer, rallied strongly on Friday as the company revealed that a group of major shareholders, including the Boyd property development family, agreed to provide a €5 million loan as it continues to seek long-term investment.
Shares in the company were up 22 per cent at 33 cents in midafternoon trading, continuing a rebound that started last week when the stock hit a record low of 11 cents. Still, the shares remain down almost 84 per cent so far this year.
Corre said a group of shareholders, including Stream Street, controlled by Northern Irish property developer Frank Boyd, and Air Corre, a renewable energy firm run by Mr Boyd’s son, Brendan, have provided a €5 million loan facility, convertible into ordinary shares after six months at a value of twice the outstanding loan amount.
Businessman Nick Furlong’s Pageant Investments and another investor, Springhill Property Investment (Jersey) are also in on the loan, which carries a zero per cent interest rate.
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“The purpose of the facility is to provide immediate funding to the company for ongoing operating expenses, working capital and capital expenditures in existing projects,” Corre said.
The loans may also be converted to shares before the six-month period is out if Corre secures the long-term investment. The company hired investment bank Rothschild to advise on securing major investment to advance its main projects.
Corre shares hit an all-time low last week when its interim chairman Rune Eng resigned after less than two months, leaving the board with only one member, chief executive Keith McGrane. Corre said on Friday it is appointing a new interim board to include representatives of key shareholders and independent directors “with relevant industry and financial expertise”.
At the start of last week Corre revealed that its founding shareholder, Corre Energy Group Holdings, had handed over a 19.3 per cent stake in the Dublin-listed company to Stream Street to settle a loan that had been backed by shares.
It also disclosed that Corre Energy Group Holdings had also pledged a further 15.4 per cent stake in Corre as security for other loans. It is understood that some of the lenders had been selling down shares in recent times as the stock was falling in value – exacerbating pressure on the price.
Sources say that the majority of the loan capital raised by Corre Energy Group Holdings was put back into the business.
Corre entered into a joint venture in early July with a Dutch company to develop its most advanced project, based in the Netherlands. The so-called Zuidwending (ZW1) project will be capable of supplying up to 320 megawatts (MW) of electricity to the grid and is due to come on stream at the end of 2026.
Other key projects include Corre’s 320MW Green Hydrogen Hub project in Denmark, another facility in the Netherlands (ZW2) and a plan to develop three compressed air energy storage plants in caverns secured last year in Germany.
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