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(Sharecast News) - Data science and machine learning technology company Insig AI has entered into a new convertible loan facility agreement with long-term shareholder David Kyte, it announced on Friday.
The AIM-traded firm said the key terms were the same as those agreed with non-executive chairman Richard Bernstein on 4 May, save that Bernstein was providing a facility of £1m and Kyte a facility of £0.5m.
It said the loan was unsecured, and repayable on or before 31 December, with interest accruing from the date of drawdown at a rate of 5% per annum, repayable in full at the end of the term.
The loan would be redeemable or convertible at the sole discretion of Kyte, at the earlier of the completion of an equity placing raising at least £2, or the due date of 31 December.
If converted, the conversion price would be the higher of 35p per share, or the prevailing share price at the date of conversion.
Insig AI said cash drawn down under the agreement would be in tranches as required, with an initial tranche of £0.2m already drawn.
A second tranche of £0.15m had also been drawn on Friday. on the convertible loan facility from Richard Bernstein, meaning a total of £0.4m had now been drawn down under that agreement.
"I am pleased that David, a long-term supporter of the company, has approached us to add to our funding options," said chief executive officer Colm McVeigh.
"As we continue to strengthen and deepen our pipeline, this funding will provide further financial flexibility while we continue our discussions with prospects, customers and potential partners."
At 1234 BST, shares in Insig AI were down 1.69% at 34.9p.
Reporting by Josh White at Sharecast.com.
