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Alliance News

Porta Communications Enters Partnership With SEC, Improves Loan Terms (ALLISS)

Thu, 3rd Aug 2017 11:59

LONDON (Alliance News) - Porta Communications PLC said on Thursday it has agreed a strategic investment and collaborative partnership with SEC SpA, and has refinanced existing loans with Hawk Investment Holdings Ltd and Retro Grand Ltd on improved terms.

The AIM-listed communications and marketing company said it has agreed a GBP3.0 million equity investment with public relations firm SEC. Porta will issue 85.7 million shares at 3.5 pence per share to SEC, to raise a total of GBP3 million.

Porta said the proceeds will be used for working capital, to support the growth of its subsidiary companies.

Alongside the strategic investment, Porta said it has signed a commercial collaboration agreement with SEC. Porta and SEC will share business opportunities and platforms to "strengthen their respective positions in the public relations market".

Porta said the sharing arrangements on joint projects will be determined on a case-by-case basis.

Fiorenzo Tagliabue, chief executive and founder of SEC, has been appointed to the board of Porta, as a non-executive deputy chairman.

Porta also said it has settled a GBP311,375 debt due to Hawk through the issue of 8.9 million shares at 3.5p per share. The company said it has also settled GBP417,779 of debt due to Retro Grand Ltd through 11.9 million shares at 3.5p.

Shares in Porta were up 12% at 3.59p on Thursday.

Porta said it has agreed the terms of a discounted bond with Hawk to replace Porta's existing GBP4.1 million discounted bond with Hawk, maturing on April 14, 2019, with an annual interest rate of 12.8%.

The Hawk discounted bond replacement has a redemption date of April 14, 2021, and the amount to be redeemed on that date will be GBP4.5 million. The replacement bond has an annual interest rate of 8%.

In 2016, Porta agreed a replacement facility with Retro Grand to re-finance its existing convertible loan from the lender. The replacement loan had a face value of GBP5.2 million and interest of 1% a month.

Porta said it has now agreed with Retro Grand to replace the existing facility with a new convertible loan. The loan will have a face value of GBP5.2 million and a loan period of 364 days from June 30. Interest will be payable at a rate of 8% per year.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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