Business
Borrowing Facility
Borrowing Facility.
About this update from Crimson Tide Plc
[{"type":"text","content":"\n RNS Number : 7195A Crimson Tide PLC 06 August 2008 \n \nCrimson Tide Plc \n('Crimson Tide' or the 'Company')\n\n\nBorrowing Facility\n\n\nThe Company announced on 23 April 2008 that in addition to a placing raising £300,000 before expenses, it was also in advanced negotiations to secure a borrowing facility of up to £600,000 to finance growth in contracted business, with an associated option to subscribe for 24,615,385 ordinary shares, exercisable at a price of 1.21875p. These funds are required to continue the growth and development of the business (due to the need to purchase technical equipment and software licences upfront) and for general working capital purposes.\n\nThe Company is pleased to announce that it has secured a borrowing facility with the Goodwin Accumulation and Maintenance Trust (a trust of which Stephen Goodwin, Chief Executive of the Company is a trustee) (the 'Lender') for up to £300,000 with an 18 month term at a fixed interest rate of 12.5 per cent. The facility has an associated option to purchase ordinary shares up to a value of 50 per cent. of the loan facility at an exercise price of 1.21875p which lapses in 18 months from the date of the agreement. There is also an option for the Lender to participate in any issue of ordinary shares if new ordinary shares are issued at a price lower than the option price, in order for the Lender to maintain its percentage holding.\n\nPursuant to Rule 13 of the AIM Rules for Companies, the provision of the borrowing facility by the Goodwin Accumulation & Maintenance Trust (of which Stephen Goodwin is a trustee) constitutes a related party transaction. The Board of the Company (excluding the aforementioned Director), having consulted with W.H. Ireland Limited, the Company's Nominated Adviser, considers that the terms of the borrowing facility and the participation of the related party are fair and reasonable insofar as its shareholders are concerned.\n\nBarrie Whipp, Executive Chairman said:\n\n'I am delighted we have concluded this facility with the Goodwin Accumulation & Maintenance Trust. The facility allows us to finance the upfront costs of our long term contracts which cont...