Frenkel Topping Group PLC
10 May 2007
Frenkel Topping Group plc
('Frenkel Topping' or the 'Company')
Loan Agreement and Issue of Options
The Board of Frenkel Topping are pleased to announce that the Company has
entered into a loan agreement with MBC Investments Limited ('MBC') pursuant to
which MBC has agreed to provide a loan facility of £500,000 to the Company (the
'Loan').
The Loan will only be provided, as set out in the Loan agreement 'to satisfy
Frenkel Topping's strategic developments'. The Loan can be drawn down in several
stages on application by Frenkel Topping to MBC and if MBC accept that the
intended use is for strategic development.
Interest accrues on the amount drawn down under the Loan at a rate of 7% per
annum on a daily basis and any interest accrued is paid quarterly.
At the time of the announcement, the Company had not drawn down any of the Loan.
In consideration of MBC providing the loan facility the Company has also issued
options to MBC in respect of 10,000,000 new ordinary shares in the Company at an
exercise price of 5p per share (the 'Options'). The Options can be exercised at
any time until 4th May 2010 provided that the aggregate value of the Options
subscribed for by MBC does not exceed the total of all sums drawn down by
Frenkel Topping under the Loan agreement. At present, as none of the Loan has
been drawn down, MBC have no rights to exercise any Options.
MBC Investments Limited is a Gibraltar based investment company operating in the
financial services sector.
For further information, please contact:
Frenkel Topping Group plc
Richard Fraser (Chief Executive) 0161 886 8000
WH Ireland Limited
David Youngman 0161 832 2174
This information is provided by RNS
The company news service from the London Stock Exchange