£250,000 Loan
Strip Tinning Holdings plc has secured a £250,000 unsecured short-term loan from GPIM Limited, a substantial shareholder, to fund working capital requirements for increased production volumes and its grant-funded investment program. The loan has an initial six-month term, with repayment options of £275,000 within three months or £290,000 at the end of the term, and an additional 1.5% monthly interest if extended for up to three more months. The Board considers this loan the most flexible short-term funding solution, and the terms of this related party transaction have been deemed fair and reasonable by the independent Directors after consulting with their Nominated Adviser.
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Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist connection systems to the automotive sector, announces that the Company's wholly owned subsidiary, Strip Tinning Limited, has entered into a £250,000 unsecured short-term loan agreement (the "Loan") with GPIM Limited ("GPIM").
The Loan has an initial term of six months and may be repaid for £275,000 within the first three months, increasing to £290,000 if repaid at the end of the six-month term. Strip Tinning Limited has the option to extend the facility for up to a further three months, during which an additional finance return of 1.5% per month is payable. The Loan is unsecured and no personal guarantees have been provided.
The proceeds of the Loan will be used for working capital purposes, supporting the Company's funding requirements for the increase in production volumes and its grant-funded investment programme.
The Board has considered a range of funding options and concluded that the Loan provides the Company with the best flexible funding solution for the short term.
Related Party Transaction
The Loan by GPIM, a substantial shareholder in the Company, is deemed to be a related party transaction under Rule 13 of the AIM Rules for Companies. The Company's Directors all of which are considered independent of GPIM consider, having consulted with the Nominated Adviser, Singer Capital Markets, that the terms of the related party transaction are fair and reasonable insofar as shareholders of the Company are concerned.
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