Business
Bank Loan, Trading Update & Notice of Results
Bank Loan, Trading Update & Notice of Results.
About this update from Dillistone Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 8909O\n Dillistone Group PLC\n 04 June 2020\n \n \n \n \n \n Dillistone Group Plc\n \n \n (\"Dillistone\", the \"Company\" or the \"Group\")\n \n \n Bank Loan, Trading Update\n \n \n & Notice of Results\n \n \n \n \n \n Bank Loan:\n \n \n \n \n \n On 16 April 2020, the Company announced that it was seeking a loan under the UK Government's Business Interruption Loan scheme. It is pleased to now announce that its application has been successful and yesterday it entered into an agreement to secure a £1.5m loan (\"BIL Loan\") repayable over 6 years at an interest rate of 3.99% over base. Interest is waived in the first twelve months and monthly repayments commence in July 2021. The BIL Loan can be repaid early without penalty. \n \n The BIL Loan will be used for working capital purposes, including development of existing and new products.\n \n It is a condition of the BIL Loan that, without bank consent, none of the £400,000 8.15% convertible loan notes (\"Loan Notes\") issued on 28 September 2017 can be repaid until the BIL Loan has been repaid in full. Accordingly, the Directors, who hold £375,750 of the Loan Notes, have signed an agreement to postpone repayment of the Loan Notes until the BIL Loan has been repaid. Quarterly interest payments will however continue to be made on the Loan Notes until repayment.\n \n \n The amendment to the Loan Note terms constitutes a related party transaction under AIM \n Rule 13. There being no Directors not interested in the Loan Notes, the Company's Nominated Adviser, WH Ireland Limited, considers that the terms of the amendment to the Loan Note terms are fair and reasonable insofar as the Company's shareholders are concerned. \n \n \n Trading Update:\n \n \n The Group was trading ahead of internal targets for 2020 prior to the impact of Covid-19 and swift action by management has helped mitigate some of the impact of the pandemic. \n \n \n \n \n \n The Board has undertaken a series of stress testing models for the business and now believes that the range of likely outcomes for the current financial year has significantly improved since the trading update on 16 April 2020. It remains too early to quantify the impact of the pandemic over the full year however the most likely outcome for H...