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1 Jul 2008 07:00
1 July 2008
Baydonhill plc
("Baydonhill" or the "Company")
New Loan Facility
The Company announces that it has entered into a new £500,000 loan facility with Wallich & Matthes Holdings B.V., a wholly owned subsidiary of Ekwienox Limited ("Ekwienox"). The facility will be available for 15 month term and will attract interest at 12% p.a. An arrangement fee of £12,500 is payable by the Company. The loan can be repaid at any time without incurring any penalties.
On 23 August 2007, the Company entered into a £700,000 loan facility with Ekwienox FX Limited, a wholly owned subsidiary of Ekwienox, for £700,000. This facility was put in place to strengthen the general working capital facilities of the Company for at least the next 12 months. Since August 2007, adverse market conditions have resulted in lower revenues from Baydonhill's core business. This, combined with a longer than anticipated development time for a new online payment platform and unbudgeted one off costs for website development and legal fees, have led to the requirement for further funding.
Baydonhill has been engaged in developing a new 'Corporate' division which provides foreign exchange services to small corporate and SME clients. Since going live with the new online payment platform in November 2007, the Company has seen a steady increase in clients and revenue from the Corporate division, which the Directors expect to continue over the next 12 months. The £500,000 facility has been put in place to strengthen the general working capital facilities of the Company for the next 12 months.
Under the AIM Rules, entering into the loan described above (the "Transaction") constitutes a related party transaction. The Directors, other than Sarah Collis and Geoff Mayhill who are interested in the transaction as they are directors of Ekwienox, (the "Independent Directors"), who have consulted with John East & Partners Limited, consider the terms of the Transaction to be fair and reasonable insofar as the shareholders of the Group are concerned. In advising the Independent Directors, John East & Partners Limited has relied upon their commercial assessment.
Enquiries:-
Wayne Mitchell Tel: +44 (0) 207 594 0515
Baydonhill Plc
Simon Clements /Bidhi Bhoma Tel: +44 (0) 207 628 2200
John East & Partners Limited
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