Business
£700,000 Loan Agreements Signed
£700,000 Loan Agreements Signed.
About this update from Plexus Holdings
[{"type":"text","content":"\n\n \nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services\n \nThis announcement contains inside information\n \n18 September 2023\n \n \n \n \nPlexus Holdings PLC\n ('Plexus' or 'the Company')\n \n £700,000 Loan Agreements Signed\n \nPlexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, known for its safety, time, and cost-saving capabilities is pleased to announce that Plexus has entered into loan agreements with a total value of £700,000 (the \"Transaction\"), with the funding to be used to provide additional working capital for the Company as it seeks to capitalise on its growing pipeline of opportunities and potential orders.\nTerms of the Loans\nPlexus has entered into a £200,000 loan with the Company's CEO, Ben van Bilderbeek, and a £500,000 loan with Plexus Property International Limited (\"PPI\"), a company owned and controlled by OFM Limited a company in turn controlled by the van Bilderbeek family and related trusts., (together, the \"Loans\"). The Loans accrue interest at a rate of 8 per cent. per annum and the balance, plus any interest accrued, is repayable after 12 months.\nAlongside the loan agreements, the Company has also entered into Primary and a Secondary call option agreements (\"Option Agreements\") with Ben van Bilderbeek and PPI (the \"Lenders\"). These Option Agreements provide the Lenders with the right to exercise an option to have their portion of the Loans repaid in shares owned by Plexus Ocean Systems Limited (\"POSL\") in Kincardine Manufacturing Services Limited (\"KMS\"), a precision engineering company in which Plexus holds a 49% interest following a strategic investment in December 2018. \nIn 2018, Plexus invested £735,000 to acquire a 49% interest in KMS, which at 31 December 2022 was valued at £838k and held as an investment in an associate of the Company. Ahead of the Transaction, the Company commissioned an independent valuation of its stake in KMS, following which the independent directors have concluded that a valuation of £1m should be applied to the Company's KMS shares for the purposes of the Options Agreements.\nThe right under the Primary option agreement to accept KMS shar...