- Financing for Project ebe 15 Buses
Proton Power Systems plc (AIM: PPS), the designer, developer and producer of fuel cells and fuel cell electric hybrid systems with a zero-carbon footprint, announces that a European commercial bank has agreed to provide c.€1.3 million financing for the order from ebe EUROPA of Memmingen, Germany for 15 hydrogen powered fuel cells, which was announced on 4 April 2019.
The ultimate customers will be the city councils of Frankfurt am Main, Mainz, Muenster and Wiesbaden, the contract has a total value of €4.1m including maintenance.
This facility will be backed by collateral covering interest and capital from Dr Faiz Nahab, who is the CEO of Proton and is indirectly interested in the share capital of the Company through SFN Cleantech Investment Ltd which is the majority shareholder of Proton.
The collateral being provided by Dr Nahab is cost free to Proton.
Related Party Transaction
Dr Faiz Nahab is a related party to the Company; the provision of a loan facility which Mr Nahab guarantees is therefore classified as a transaction with a related party for the purposes of the AIM Rules.
Therefore in accordance with the AIM Rules, the directors of the Company, with the exclusion of Dr Nahab, having consulted with the Company’s nominated adviser, Stockdale Securities Limited, consider that the terms of the loan facility including the guarantee being provided by Dr Nahab are fair and reasonable insofar as the Company’s shareholders are concerned.