Working Capital Loan and Related Party Transaction
Company raises £100,000 via loans from shareholders and others with 10% arrangement fee and warrant sweetener.
- Working capital loan £100,000
- Arrangement fee 10% of loan commitment
- Interest rate (from 1 November 2025) 0.5% per calendar day
- Related party loan (Sanderson Capital Partners) £25,000
- Total warrants to be issued 33,333,334
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Catenai PLC (AIM: CTAI), the AIM quoted provider of digital media and technology, announces that it has entered into loan agreements to provide the Company with £100,000 of funding ("Loan Agreements").
Working Capital Loan
In order to support its own working capital, Catenai has entered into Loan Agreements with certain existing shareholders and a new party to provide £100,000 in loans on the following terms:
- An arrangement fee of 10% of the loan commitment ("Fee") added to the loan balance.
- No interest charged until 1 November 2025 by when it is expected that the loan will have been repaid, if not thereafter at 0.5% per calendar day, on the outstanding balance.
- Immediate advance of £10,000 due by 31 January 2025 with nine additional monthly drawdowns of £10,000 from January 2025.
- Upon repayment of the Fee and loan commitment, 33,333,334 warrants over new ordinary shares exercisable at a price of 0.3 pence per share for a period of two years from the date of repayment, will be issued to the lenders. A further announcement will be made on issue of the warrants ("Warrants").
Related Party Transaction
Sanderson Capital Partners Ltd are providing £25,000 under a Loan Agreement and will receive 8,333,333 Warrants upon repayment.
The Loan Agreement which has been entered into between the Company and Sanderson Capital Partners Ltd constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules by virtue of Sanderson Capital Partners Ltd being a shareholder of more than 10% of the Company's current issued share capital (the "Transaction"). Brian Thompson and John Farthing, being independent directors of the Company, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, consider that the terms of the Transaction are fair and reasonable in so far as the Company's shareholders are concerned.
Caution regarding forward looking statements
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.