(Alliance News) - Trading and risk management software provider Brady PLC on Wednesday said its subsidiaries Brady Trading Ltd and Brady Credit Trading Ltd have entered into a GBP3 million loan agreement with the company's two largest shareholders, Coltrane Master Fund LP and Kestrel Opportunities.
The proceeds of the loan will be used to repay the loan provided to Brady Trading by Hanover Acquisition Ltd. The balance of the proceeds will be applied to the Brady's working capital requirements.
"The board believes that the Facility will provide sufficient additional funding to enable the group to manage its working capital position until the end of January 2020 and the facility secures the group's short term funding requirements independent of the recommended cash offer for the company by Hanover Acquisition Ltd described in an offer document dated 17 October 2019," Brady said.
In mid-October, Brady agreed to a 10 pence per share cash takeover offer made by a vehicle of Hanover Active Equity Fund II Sca SICAV-RAIF, valuing the firm at GBP8.3 million.
Brady also said that it would have to raise additional cash should the merger offer by Hanover Acquisition lapse and that it is evaluating its options.
Kestrel has 27.4% stake in Brady, while Coltrane Master Fund owns 19.8% interest
Brady shares in London closed at 10.72 pence each on Wednesday, up 2.1%.
By Tapan Panchal; tapanpanchal@alliancenews.com
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