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- Green technology company Integrated Green Energy Solutions (IGE) is seeking alternative financing sources as the prolonged pandemic continues to impact its ability to operate
- The global COVID-19 outbreak has made it difficult for the company to progress its banking needs and meet capital requirements
- In an effort to arrange new funding sources, IGE has reconsidered its loan facility with financing group Structured Growth Capital
- Currently, IGE has an approximate US$90 million (A$133.87 million) loan facility obligation with Structured Growth
- If IGE chooses to withdraw from the loan facility, Structured Growth would return a US$1.5 million (A$2.23 million) deposit, which could be used for the company’s immediate cash requirements
- IGE shares have been suspended since January 20, last trading for 13 cents each
Green technology company IGE Solutions (IGE) is seeking alternative financing sources as the prolonged pandemic continues to impact its ability to operate.
IGE is currently developing technology to turn used plastics into fuel sources. The company’s patented technology can produce a number of different commonly-used fuels such as diesel, petrol, naphtha, marine fuel and marine diesel oil.
However, the global outbreak has made it difficult for the company to progress its banking needs. Without normality returning to the wider market, IGE stated it cannot accurately finalise funding for its projects.
In an effort to arrange new funding sources, IGE has reconsidered its loan facility with financing group Structured Growth Capital.
Currently, IGE has an approximate US$90 million (A$133.87 million) loan facility obligation with Structured Growth. While IGE remains committed to the facility, the company has asked Structured Growth to confirm the short-term availability of an approximate US$1.5 million (A$2.23 million) deposit.
The deposit is being held by Structured Growth Capital as part of the facility. If other short-term financing cannot be found, IGE has said that by withdrawing from the loan facility, the deposit will be transferred back within 20 days.
However, IGE said it currently remains committed to continuing its arrangement with Structure Growth and is concurrently seeking other financing options.
President of Structured Growth Brian Engel said he has full confidence in IGE’s technology and its overarching business.
“SGC is entirely committed to finalising the IGE funding over the coming weeks in order that the IGE projects can be quickly progressed for the benefit of both shareholders and the global environment,” Brian said.
“I appreciate the most recent extension of funding finalisations have been frustrating but in the current market environment, the slowing of processes has been inevitable. It is simply taking longer to complete basic banking administrative tasks,” he said.
Brian went on to say that while forecasting across all business remains challenging, he estimated that funding for the company will commence before June 15, 2020.
Of course, this isn’t the first time IGE has told shareholders funding is being delayed. Since the January Abu Dhabi Investment Authority (ADIA) funding blunder, the SGC funding has been delayed over and over.
The first round of funds was meant to hit IGE’s bank in February, but today shareholders are still waiting. IGE is also yet to confirm whether the US$300 million funding from Tangier Service Enterprises has been received after the company insisted it too would be delivered in February.
IGE shares were suspended after the ADIA retraction and have yet to be reopened for trade. Shares in the company last traded for 13 cents each.
