(Alliance News) - Fulcrum Utility Services Ltd on Monday saw shares plummet on the announcement of a convertible loan facility agreement with Bayford & Co Ltd for funding of up to GBP6 million.
Shares in the multi-utility infrastructure and services provider closed 41% lower at 2.00 pence each in London on Monday.
According to the agreement, Fulcrum Utility will receive a principal amount of up to GBP6 million, of which GBP4 million will be from Bayford, and the remaining GBP2 million from Harwood Capital Management Ltd.
The loan is repayable on or before November 1, 2023, and can be converted into ordinary shares at the discretion of the lenders from April 1, 2023, or earlier in the event of default.
The cash provided by the facility will be drawn in tranches as required by the company.
"Clearly the situation that the company has found itself in is disappointing. Whilst it was known that the company had legacy operational issues, these were deeper and more longstanding than anticipated. This, set against a turbulent energy market and difficult economic backdrop, have created deeply challenging and unprecedented conditions for the Group that could not have been predicted at the time of the fundraise in December last year," said Chair Jennifer Babington.
"The facility is, however, I believe a positive demonstration of our major shareholders' continued belief and commitment in Fulcrum and an endorsement of the future potential of the business."
By Holly Beveridge; hollybeveridge@alliancenews.com
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