Shareholder Loan

Pennant International Group plc (AIM: PEN), the systems support software and training solutions company, announces that it has entered into a short-term unsecured shareholder loan agreement with Brett Gordon, an existing major shareholder, for a loan of up to £600,000 (the "Loan Agreement").

As highlighted in the Company’s recent interim results announcement, Pennant secured a temporary increase to its bank overdraft facility to £1.4m to support working capital fluctuations through Q3 2026. This new Loan Agreement enables the Company to reduce its bank overdraft to £1.0 million and to provide continued flexibility as it manages forecast working capital peaks through the remainder of the financial year. This facility bridges a period of delivery against our contracted order book which is expected to result in contracted milestone payments during Q4 2026 and early 2027.

The Loan Agreement further supports the continued execution of the Group’s ongoing cost reduction and restructuring programme, which is currently forecast to deliver sustainable, annualised cost savings in excess of £500,000 starting from FY2027.

The interest rate under the Loan Agreement is fixed at 10.0% per annum, payable monthly, with the principal being repayable in full through one bullet repayment 180 days after drawdown. The Company maintains the option to prepay the facility, in whole or in part, at any time prior to maturity without penalty.

The Company anticipates that it will draw down £400,000 of the loan with immediate effect.

The Group remains on track to meet full year 2026 market expectations.

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.