Iofina PLC - Corporate Update
("Iofina" or the "Company")
(LSE AIM: IOF)
Iofina, a specialist in the exploration and production of iodine and manufacturers of specialty chemical products, today provides an update to the market regarding H1 2020 iodine production, debt refinancing and other corporate matters.
H1 2020 Production
In H1 2020, Iofina produced 284.4 metric tonnes ("MT") of crystalline iodine of which 277.5 MT was produced by Iofina's four established iodine plants and 6.9 MT from IO#8. This production was in line with H1 2019 production of 286.7 MT. As previously communicated, IO#8 was briefly open in April for a few weeks, shut down in May, and reopened again in late June. The Company is still optimizing this new plant but expects IO#8 to run throughout the second half of 2020 and beyond. With all five plants running as normal, the Company is expecting total iodine production for H2 2020 to range between 340 and 360 MT of crystalline iodine. However, the Company notes that the ongoing uncertainty of the global pandemic does make production forecasting more difficult. Encouragingly, iodine prices have remained steady in Q2 2020 and into Q3 2020, with typical iodine prices now at
The Company continues to progress a debt refinancing package with a new lender. One of the principal objectives of this process has been, and remains, to repay the Company's current lenders (together, the "Secured Lenders") in full, who have supported the Company over the past several years. Unfortunately, the time required to complete the debt refinancing has been significantly impacted by events related to COVID-19. The new debt restructuring terms are likely to include a term loan as well as a revolving line of credit to meet Iofina's debt repayment obligations. Iofina will detail the final terms of the refinancing to the market once terms have been agreed. It is anticipated that the refinancing will be completed within the two-month extension recently granted by Iofina's current senior lender Stena Investments S.à.r.l. ("Stena"). Once the debt refinancing is complete, the Secured Lenders will be paid in full. As previously communicated, Iofina's junior lender,
Pursuant to the terms of the security agreements previously negotiated and entered into between the Company and the Secured Lenders, Stena was appointed as security trustee, meaning that it holds the security interests granted over Iofina's assets on trust for itself and Southern Rock. The security interests granted by the Company, both in the
The Company owes approximately
Iofina anticipates that in Q3 2020 it will apply for loan forgiveness for Payroll Protection Program ("PPP") loans totalling
Iofina's continues to monitor carefully its investment in the hemp seed joint venture with Organic Vines OP (the "JV"). Hemp seed sales from seed suppliers across the
Commenting, President and CEO of Iofina Dr.
"We are pleased to continue to progress towards the completion of our debt refinancing which will provide us with a clean slate and allow us to dedicate more focus towards maximising our fantastic growth opportunities in iodine and continuing to generate shareholder value."
CEO & President
Tel: +44 (0)20 3006 3135
Tel: +44 (0)20 7220 0500
Tel: +44 (0)20 3004 9512
Iofina Resources develops, builds, owns and operates iodine extraction plants using Iofina's WET® IOsorb® technology. Iofina currently operates five producing IOsorb® plants in
Iofina Chemical has manufactured high quality halogen speciality chemicals derived from raw iodine, as well as non-iodine based products for over 35 years.
Iofina's newest subsidiary, IofinaEX, is fully licensed to process hemp in the state of
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
This information is provided by RNS, the news service of the
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