Shareholder Loan
Pennant International Group PLC announced a short-term unsecured shareholder loan agreement with Brett Gordon for up to £320,000. This loan provides flexibility as the company reduces its corporate overdraft from £2 million to £1 million. The loan carries a fixed interest rate of 9.75%, payable at 90-day intervals, with the principal repayable in full 180 days after drawing. The company anticipates drawing the loan in full later this week, and the directors consider the terms fair and reasonable for shareholders. The recent £3.6 million order from BAE Australia contributes to converting the sales pipeline.
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Pennant International Group plc (AIM:PEN), the systems support software and training solutions company, provides the following financing update.
In its announcement of 19 September 2025, the Company noted that certain shareholders had indicated their support to provide additional working capital by way of a shareholder loan in place of the proposed conditional subscription of £320,000 in new ordinary shares, which was discontinued.
Drawing on that support, the Company has now entered into a short-term unsecured shareholder loan agreement with Brett Gordon, an existing major shareholder, for a loan of up to £320,000 (the "Loan Agreement").
The Loan Agreement will provide the Company with greater flexibility and contingency as it manages working capital through the previously-announced reduction of its corporate overdraft from £2 million to £1 million at the end of this month, and as it continues its efforts to convert its sales pipeline, building on the recent £3.6 million order from BAE Australia.
The interest rate under the Loan Agreement is fixed at 9.75% (payable at 90-day intervals), with the principal being repayable in full through one bullet repayment 180 days after drawing.
The Company anticipates that it will draw the loan in full later this week.
Related Party Transaction
The entry into the Loan Agreement constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies.
The Directors of the Company consider, having consulted with the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.