LONDON (Alliance News) - Nature Group PLC on Tuesday said that it entered into a GBP400,000 loan agreement with commercial building company Fairweather & Sons Ltd at an interest rate of 5.0% per year, to be paid quarterly in arrears.
The oil & gas waste collection company said it also entered into a warrant instrument in connection with the loan deal. Fairweather & Sons may subscribe for up to a maximum of 12.5 million shares at an exercise price of 3.20 pence per share. The company said that outstanding loan balance will be reduced in accordance with Fairweather & Sons warrants exercise.
Nature Group requested to suspend its shares from trading on AIM at the end of March whilst it seeks to clarify its financial position. Shares in the company remain suspended, last traded at 3.15 pence.
The company said that the loan will allow it to satisfy a number of near-term payment obligations, including the tax liability. It is obliged to repay the borrowing by the end of January 2019.
In addition, Nature Group has secured an extension to the verbal waiver deferring the repayment of lease and debt financing facilities totalling GBP1.0 million provided to Nature Oil & Gas Holding until the end of June.
Looking ahead, the company said that its financial position remains extremely difficult and it continues talks with a number of parties about its future financing, structure and strategic direction.
"The board of Nature Group is grateful to the Fairweather family for their considerable financial support for the company at this time," said Chairman Berend Straten. "The proceeds of the loan will provide the company with the ability to repay their immediate liabilities, whilst the board acts to secure the long-term future of the company."
