MXCP2 Mar 2015 07:23
In accordance with the AIM rules regarding related party transactions, MXC announces that pursuant to today's announcement of acquisitions by Castleton Technology plc it has entered into a loan agreement with Castleton Technology Plc ("Castleton") for up to £1.5 million (the "Loan Agreement"). Interest is payable on amounts drawn down under the Loan Agreement at a rate of 10 per cent. per annum, with a commitment fee of 4 per cent. payable on amounts undrawn. The Loan Agreement has a term of 18 months and includes an arrangement fee of £25,000, payable to MXC. Amounts drawn down under the Loan Agreement are capable of being converted into new Ordinary Shares of Castleton at a price of 2 pence per Ordinary Share at any time at MXC's option.
The Company has also advanced £650,000 of the loan note it issued on October 30th 2014 to 365 Agile Limited to fund the acquisition of South View Solutions Limited, also announced today.
These loans will be financed by the existing cash resources of the Company, further supported by a short-term facility from MXC Holdings Limited ("MXC Holdings") of up to £2 million (the "Shareholder Loan"). Interest is payable on amounts drawn down under the Shareholder Loan at a rate of 8 per cent. per annum on drawn amounts and 2% per annum on undrawn amounts. The Shareholder Loan has a term of 3 months and includes an arrangement fee of £25,000, payable to MXC Holdings.