Business
Debt Facility Secured
Debt Facility Secured.
About this update from Krm22 Plc
[{"type":"text","content":"\n \nRNS Number : 3227X KRM22 PLC 29 April 2019 \n\nKRM22 plc\n \n(\"KRM22\" or the \"Company\")\n \nDebt Facility Secured\n \nKRM22 plc, (AIM: KRM) the technology and software investment company that focuses on risk management for capital markets, is pleased to announce that its subsidiary KRM22 Central Limited has entered into a new five-year debt facility (the \"Facility\") with Harbert European Growth Capital Fund II (\"Harbert\" or \"HEGCF II\"). \n \nThe Facility will support future business growth and allow the Company to pursue its pipeline of investment targets.\n \nThe Facility, summary details of which were outlined in the Company's fundraising announcement of 3 April 2019, is for up to EUROS 11.55 million (the euro equivalent of £10.0 million) of which an initial £1m will be drawn down immediately. The availability of additional drawdowns is based on the value and growth of the KRM22 group's (\"Group\") annualised recurring revenues (\"ARR\") and drawdowns can be made until 31 December 2020. \n \nThe Company has a strong pipeline of investment opportunities and continues to actively pursue near-term acquisition and partnership opportunities. As the Group grows its ARR organically and via acquisition, further drawdowns of the Facility are expected to be made. \n \nThe Facility is secured on certain Group assets and does not include covenants based on the Group's financial performance.\n \nThe interest rate payable on debt drawn down is 11 per cent. per annum on the initial £1 million drawdown and the higher of 11% or 11% plus one year EURO Libor for additional drawdowns. In conjunction with the Facility, the Company has constituted warrants over a number of Ordinary Shares in the Company to Harbert with a total value equal to a maximum of £1.0 million at an exercise price as set out below. Upon the initial drawdown, warrants over 495,049 new Ordinary Shares will be issued with an exercise price of £1.01 per Ordinary Share. Additional warrants will be issued in an amount equal to 5.6% of each subsequent drawdown of the Facility (up to a maximum value of £500,000 in aggregate) calculated by reference to an exercise price of the lower of a 10% discount to the prevailing market price or £1.01 per new Ordinary Share. \n \nKeith Todd, CEO and Executive Cha...