Future is Very BrightToday 10:10
Whilst today's announcement is disappointing, it is also not completely surprising. The RNS's relating to the debt have previously clearly indicated that Candy agreed to the lower interest in principle, on the basis that the official documentation was concluded within a reasonable time; Edwards did not give that assurance and it might be reasonable to assume he was frustrating the process on the basis, as already suggested today, the repayment was significantly earlier than anticipated. It was the completion of the documentation that would formally trigger the lower interest rate so it seems the principle was well laid out in writing, but the execution manipulated to an alternative agenda on a technicality.
Both lenders signed up to the same agreement so it's not unreasonable for Candy to seeks the same treatment as the minor lender, given Edwards is playing hardball and, given the delay games, potentially has a technical case, if not a reasonable one. A compromise (as appears to have been instigated, if not agreed) is likely the better outcome than protracted legal proceedings, despite Edwards seeming to not be following the clear spirit of the agreement he signed up to. All speculation on my part of course, but reasonable speculation based on previous news released in my view.
It's worth remembering that, without the support of the major shareholders, we would probably have gone bust, but it's also the case that they have been rewarded hugely by that support. The original mezzanine debt was only around $20m from memory (and I can't find an RNS to the contrary) with the rest made up of interest at 20% and penalty interest of 25% compounding. Across all the debt, we have paid over $70m interest in 3.5 years when base rates were 0.1% so they pretty much got their share holdings free if you factor both elements.
Regardless, the business is in a fantastic position going forward and I remain hugely excited about the next few months and years and very confident of significant growth ahead..... The future is very bright!