CalciTech Ltd. (Plus Markets:CLK) (OTCBB:CLKTF) today provides an update on the funding process related to its 100,000 tonnes per annum planned plant at Leuna.
The Company is pleased to announce that its house bank designate has successfully finalised due diligence of the company's project at Leuna. This is a major step towards completion of the project finance. Due to the turbulence in the financial markets, the bank's credit committee will now restrict its commitment to one third of the total required and is ready to lead a "Club" of a further two banks in a syndicate.
After a good response from banks, a CalciTech team headed by new COO, Thomas Livingstone, is commencing visits today, initially in Germany, to present the commercial aspects of the project and business. Two additional participating banks completing the syndication will allow the House bank to endorse the application to the Investment Bank of Sachsen Anhalt for a grant of up to €25 million. Approval of this application would allow for funding to proceed to completion immediately and building to commence this year.
Roger Leopard, CEO for CalciTech, stated, "We are both pleased and frustrated at the same time. Pleased that the due diligence process has finally been completed, frustrated in that external factors in the finance markets require us to go yet another extra mile and bring in further parties into the financing."
"Obviously, the sub-prime related market turbulence has had a major effect on any funding proposition. Unfortunately this has led so far to some eighteen months delay with our project. That said, we continue to make progress with our roll out strategy with the development of further project opportunities, as well as on our planned roll-out financing and upgrade of the market for our share listing."
Registered Office: |
CalciTech Limited |
Par-La-Ville Place |
14 Par-La-Ville Road |
Hamilton |
Bermuda |
Company registration number: 20494 |
The directors of the company take responsibility for this announcement.
This press release contains "forward looking statements" including forward looking statements as that term is defined in section 27a of the United States Securities Act of 1933 and section 21e of the Securities and Exchange Act of 1934. Statements in this press release, which are not purely historical are forward looking statements and include any statements regarding beliefs, expectation or intentions concerning the future. Forward looking statements in this press release include, but are not limited to statements which are subject to a number of contingencies and uncertainties, including, but not limited to, market acceptance for CalciTech's products, manufacturing of CalciTech's products in a commercial setting, obtaining adequate financing and construction management for products and obtaining appropriate permits.
It is important to note that the corporation's actual outcomes may differ materially from those in forward looking statements contained in this press release. Although the company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations and intentions will prove to be accurate. Readers should refer to the risks disclosures in the company's public filings with the Securities and Exchange Commission.