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Origo repays loan and sells Jinan interest to tackle running costs
(WebFG News) - Investment firm Origo Partners announced on Monday that it has repaid in full the $2.5m loan that it entered into in December 2015.
The repayment, made in full satisfaction of all obligations and without any penalties or interest, to lender Lars Bader is an early repayment of the loan which was due to be repaid by December 2020 or by the time Origo had distributed $6m to its shareholders.
John Chapman, chairman of Origo, said: "The repayment of the $2.5m loan on very advantageous terms to the company is a major step forward in the board's efforts to repair the company's balance sheet so capital can be returned to shareholders."
Furthermore, Origo has completed the sale of a 3.5% beneficial interest in Jinan Heng Yu Environmental Protection Technology, the operating company of Niutech Energy Ltd, for net cash proceeds of $2.4m.
"The company is now debt free and, with the sale of the 3.5% beneficial interest in Heng Yu, has sufficient capital to meet its running costs for the foreseeable future. The company expects that further asset sales will enable the company to begin returning capital to shareholders," said Chapman.
Origo continues to hold a 3.7% indirect interest in Jinan Heng Yu.
As of 1056 BST, Origo Partners' shares were up 6.98% at 1.15p.