The loan facility, worth up to €5m, has been agreed with a number of “significant” players, including Stream Street.
Earlier this month, the energy-storage group said that its founding shareholder, Corre Energy Group Holdings, gave a 19.3pc stake to Stream Street to settle a loan that had been backed by shares.
Other shareholders involved in the loan facility agreement include Air Corre, Springhill Property Investments and Pageant Investments, an investment vehicle controlled by Irish businessman Nick Furlong.
These shareholders are long-term investors in the business and represent 33pc of the company’s share capital, Corre reported.
Corre said the loan would provide “immediate funding” to the business for ongoing operating expenses, working capital and capital expenditures in its existing projects. It added that the loan is available to be drawn down for one year, while the company can draw down €450,000 upon signing.
The loan is due for repayment in full on its maturity date of June 30, 2028.
Corre added that the amount drawn down may be converted intro ordinary shares during the initial six-month lock-up period in the case of a “liquidity event”. This includes the potential completion of a Rothschild-managed investment process or in the event of a default.
In March, Corre announced that it had received “multiple indications of interest: industrial, strategic and institutional” to invest in the business. A month later, it appointed Rothschild & Co as financial advisor to the company while it assesses options.
It said at the time that discussions with each interested party remained at an early stage and did not confirm whether interest is for some or all of the business. Corre now expects to update shareholders on the process next month.
The company added that any further existing shareholders who come forward will also be offered the chance to participate in the loan facility subject to a minimum qualifying investment of €100,000.
A new interim board of directors is also set to be appointed, the company said in a statement today.
This board will comprise of “representatives of key shareholders”, as well as independent directors with “relevant industry and financial expertise”.
This board is then expected to complete an operational review of the business, with a focus on significantly reducing its current operating costs.
Shareholders will vote on the new board at an upcoming Extraordinary General Meeting (EGM).
Shares in the company gained strongly on the news but are still down more than 90pc over the past 12 months.