LONDON (Alliance News) - 1pm PLC, which lends to small and medium-sized enterprises, Friday said it has negotiated additional block discounting facilities amounting to GBP4.5 million from three different lenders, as well as raising an additional GBP250,000 from high net worth individuals, with all of the additional funding to go towards writing new business.
The additional funding was disclosed within a statement confirming the close of 1pm's GBP3.8 million fundraising through a placing and open offer, which coincided with 1pm's annual general meeting and general meeting held in Bath.
The loan terms are consistent with those of other current providers of funds to the company, 1pm said.
1pm also said that UK Private Healthcare Ltd has agreed to convert an outstanding loan of GBP380,000 into shares at the same 61 pence price of the new share placing. This means UK Private Healthcare will be issued with 622,950 new shares under the loan conversion, about 1.69% of 1pm's enlarged equity.
1pm Non-Executive Director Ron Russell is a director of UK Private Healthcare, and has a 25% stake in the company that made the loan to 1pm.
Rod Channon, another 1pm non-executive, stepped down from his role at the AGM but will continue to be consulted on "special" projects.
"The anticipated completion of the oversubscribed equity fund raising together with the new loan facilities announced today will ensure 1pm is well-placed to finance its planned operational expansion and to continue to grow its lease and business loan portfolio, the company is highly appreciative of the continuing support of all shareholders and debt providers," Non-Executive Chairman Ian Smith said in a statement.
Chief Executive Maria Lewis said: "With the new loans recently secured and the proceeds of the placing and open offer set aside for lending, we have already secured new funding of GBP8.57 million in the financial year to date compared with GBP11.5 million in FY2013. This funding will help fuel our continued growth, providing much needed finance to the SME market."
1pm shares were Friday quoted up 1.8% at 58.00 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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