Related Party Short-Term Loan
Updated : 07:00
IDE Group Holdings Plc
("IDE", the "Group" or the "Company")
Related Party Short-Term Loan
IDE Group Holdings plc, the mid-market network, cloud and IT managed services provider, announces it has entered into a short-term loan agreement with MXC Capital.
The loan is for £1,000,000, carries an arrangement fee of 3.75% and the interest rate varies between 1.5%-3% according to the repayment date, with the rate being lower for quicker repayment. The Company expects to repay the loan by the 31 March 2021. Should it not be repaid by this date, the terms will revert to the same terms as the outstanding loan notes, details of which have previously been announced on the 10th January 2019. The loan will be unsecured and subordinated to the outstanding loan notes.
MXC Capital is deemed to be a related party of the Company pursuant to the AIM Rules for Companies (the "AIM Rules") as they are a substantial shareholder and because Ian Smith, CEO of MXC is Executive Director of IDE.
Andy Parker, being the sole independent director for these purposes considers, having consulted with the Company's nominated adviser, finnCap, that the terms of the related party transaction are fair and reasonable insofar as the shareholders of the Company are concerned.
Contacts:
IDE Group Holdings Plc Andy Parker, Non-Executive Chairman
| Tel: +44 (0)344 874 1000 |
finnCap Limited Nominated Adviser and Broker Corporate finance: Jonny Franklin-Adams/ Abby Kelly ECM: Tim Redfern/ Richard Chambers | Tel: +44 (0)20 7220 0500 |
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