Loan Agreement & Related Party Transaction
Company secures £400,000 unsecured loan from related parties at Bank of England base rate plus 4.25%.
- Loan amount £400,000
- Interest rate 4.25% above Bank of England base rate
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Primorus Investments plc (AIM: PRIM) announces that the Company has entered into an unsecured loan agreement with Susan Labrum and Lucy Labrum (together the "Lenders") ("Loan Agreement").
Under the terms of the Loan Agreement, the Lenders have agreed to provide in the Company, in aggregate, a principal amount of £400,000 ("Loan").
The Loan is unsecured and bears interest at a rate of 4.25 per cent. per annum above the Bank of England base rate, calculated daily and payable monthly in arrears.
The Loan will be used for general working capital purposes and to fund investments in line with the Company's stated investment strategy.
Unless otherwise agreed between the Company and the Lenders, the Loan may not be repaid during the first 12 months following the date of the Loan Agreement, other than following an event of default. Following that period, the Company may repay all or part of the Loan without premium or penalty, subject to giving not less than one calendar month's written notice.
Related Party Transaction
Susan Labrum is the spouse of Rupert Labrum, a director of the Company, and Lucy Labrum is the adult daughter of Rupert Labrum. Accordingly, the Loan constitutes a related party transaction pursuant to Rule 13 of the AIM Rules (the "Transaction"). Hedley Clark and Matthew Beardmore being directors of the Company independent of the Transaction, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, consider the terms of the Transaction to be 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.