(Alliance News) - Premier Veterinary Group PLC's shares fell on Wednesday, as it reported that it has entered into another financing agreement with lenders Bybrook Finance Solutions Ltd.
Shares in the company - formerly known as Ark Therapeutics - were 26% lower at 41.00 pence each in London on Wednesday morning.
Under the new agreement, Bybook will provide an additional secured loan facility of GBP1.1 million, with the first tranche, of GBP600,000 already drawn down.
Premier Veterinary has two further tranches of GBP250,000 at its disposal, with each available for draw down on May 22 and then July 24.
If the company wishes to withdraw the funds, it must issue Bybrook with warrants to subscribe to 383,673 shares, at a price of 10.00p each, before April 30.
The loan carries a 1% monthly interest rate and repayment will be due on April 30, unless Premier Veterinary issues the warrants Bybrook, in which case, payment would then be due on July 31, 2021.
Premier Veterinary said: "The loan will be utilised by Premier Veterinary to fund the group's working capital requirements including the payment of a GBP100,000 arrangement fee payable to Bybrook."
This time last year, the company reported that it entered into a deal with Bybrook for a secured loan worth GBP3.9 million.
The veterinary practices operator on Wednesday said the repayment date for this loan, which also carries a 1% monthly interest rate, was extended until July 31, 2021.
By Eric Cunha; ericcunha@alliancenews.com
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