RE: Lofgran & Stafford & ?17 Feb 2021 09:48
Reduction in Overheads
Nostra Terra has now achieved a reduction in monthly overhead costs of over 60% versus the monthly average during 2019 (this excludes one-time expenses already incurred - in particular, costs dealing with the two requisitions initiated by one of the Company's shareholders earlier this year). Savings have been made across many aspects of the business, including significant cuts in remuneration to the CEO (per RNS of 8 April 2020) and to the non-executive directors. Both non -executive directors have now agreed to be paid in shares, at a time to be determined, in lieu of 3 months of their annual cash fees. The remainder of the non-executives fees in cash is currently being deferred to be settled at a time to be agreed, further aligning the interests of directors and shareholders.
Additional improvements in the field are described below.
Discovery Energy Limited Loans
The Company has reached an agreement to restructure existing loans with Discovery Energy Limited ("Discovery") (the "Loans"). The Loans, of which £233,481 is, in aggregate, outstanding as at 1 June 2020, and which was repayable on demand, has been extended to 1 April 2022, bearing an interest rate of 10% per annum, accruing monthly, and consolidated into one loan (the "Discovery Loan"). An initial payment of £10,000 has been paid to Discovery, with payments of £5,000 per month to be made by the Company until 1 April 2022, with the balance outstanding due on or before that date. The structure was agreed with careful consideration of the group's cashflow requirements, in order to help the Company achieve its immediate goal of reducing monthly costs as much as possible.
A fee of £24,000 (the "Loan Fee") is payable to Discovery as consideration for agreeing to reschedule the Loans, consolidated into the Discovery Loan, until 1 April 2022. The Loan Fee, of which £7,199 has been settled from the initial payment of £10,000, will be further settled from the monthly repayments following repayment of accrued interest with any balance being used to repay the principal amount of the Loan. The amount of the Loan Fee due and payable shall be reduced in the event that any amount of the Discovery Loan is repaid early in the proportion of the amount repaid to the total amount of the Discovery Loan.
Further, the Company owes to Mr Ainsworth and Discovery, in aggregate, £85,292 in outstanding director and consultancy fees (the "Additional Fees" and, together with the Loan Fee, the "Fees"). The Additional Fees shall be subject to the same interest rate as the Discovery Loan and shall be repayable on or before 1 April 2022 as per the Discovery Loan. Based on the above repayment profile, and assuming no early repayments, the Company expects to owe Mr Ainsworth and Discovery, in aggregate, £282,580 at 1 April 2022.
Related party transaction
Discovery is a vehicle controlled by Mr Ewen Ainsworth, who served as a Director of the Compa
Sign In
Follow the stocks
