Loan Agreed 16 Nov 2008 13:33
Vianet announces today that it has agreed terms for a loan totalling £300,000 ("the Loan") with Barkley Limited ("Barkley"), a Company registered in St Vincent and the Grenadines with registered number 37 CTD 1997. The Loan agreement constitutes a related party transaction, pursuant to Rule 13 of the AIM Rules for Companies, due to Barkley being a substantial shareholder in the Company.
The Loan is intended to provide additional working capital financing for the Company as an alternative to a further injection of equity. In the opinion of the Directors a short term loan facility is a more appropriate and a cheaper financing option for the Company than a further equity issue at the present time.
The Loan is unsecured and bears no interest. It is drawable in two tranches on the following basis:
First tranche: £150,000 drawn down on 29 October 2008
Lender's fee of 10% of the principal amount drawn down (i.e. maximum £15,000, exclusive of VAT) Principal amount and lender's fee repayable on 29 October 2009
Second tranche: £150,000 available for draw down on 26 November 2008
Lender’s fee of 10% of the principal amount drawn down (i.e. maximum £15,000, exclusive of VAT) Principal amount and lender’s fee repayable on 26 November 2009.