Business
Loan Agreement
Loan Agreement.
About this update from Sabien Technology Group Plc
[{"type":"text","content":"\n RNS Number : 0794X Sabien Technology Group PLC 07 August 2009 \n \n7 August 2009\n\nSabien Technology Group Plc\n('Sabien' or 'the Company')\n\nGeneral Capital's Loan Agreement and Shareholdings in the Company\n\n\nIntroduction\n\nSabien is pleased to announce that it has entered into a £400,000 loan agreement ('the Loan Agreement') with TVI 2 Limited ('TV2'), a company incorporated and registered in Jersey which is advised by Thames Valley Capital Limited and which is owned by Bruce Gordon. The purpose of the Loan Agreement is to finance the repayment of Sabien's existing secured convertible loan from General Capital Venture Finance Limited ('General Capital') which was originally repayable in December 2009. \n\nIn addition, Sabien has been notified that TV2 has bought from General Capital 3,000,000 Sabien ordinary shares, representing 11.29 per cent of the issued share capital of Sabien. General Capital has security over a further 500,000 Sabien ordinary shares as collateral over a loan made to a third party, representing 1.88 per cent of the issued share capital of Sabien, but has granted TV2 a right of first refusal to buy these shares should it take possession of these and decide to dispose of them within the next twelve months.\n\nDetails of the transaction\n\nThe Loan Agreement will have an initial term of six months and will be extendable by Sabien for a further period of 18 months. If the loan is extended, then Sabien will incur a premium of £85,000 which will be added to the new loan. The new loan will be secured by a fixed and floating charge over the assets of all the companies in the Sabien group of companies. A fixed interest rate of 8 per cent. per annum will be payable quarterly in arrears from the date of completion. Sabien will have the right to make repayments of the new loan at any time without penalty.\n\nIt is proposed that during the first six months of the Loan Agreement, Bruce Gordon will attend Sabien's Board meetings as an observer. Sabien has agreed to pay a monitoring fee of £2,000 per month while the loan is outstanding and such fee will be waived if Sabien appoints a Non Executive Director who is approved by TV2.\n\nIn addition the Company has issued TV2 with warrants to subscribe for 2,952,279 Sabien ordinary shares representing 10% of the enlarged share capital o...