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Loan Facility

13 Oct 2010 12:15

RNS Number : 3240U
AIM Investments PLC
13 October 2010
 



13 October 2010

AIM Investments Plc

(the "Company")

Loan Facility from Desmond Holdings Limited

 

Following the suspension of trading in the Company's shares on AIM on 4 May 2010 under Rule 15 of the AIM Rules, the Company has until 4 November 2010 to substantially implement its Investing Policy to the satisfaction of the London Stock Exchange or carry out a reverse transaction under Rule 14 of the AIM Rules, failing which its admission to AIM will be cancelled.

 

In order to help fund the implementation of its Investing Policy, the Company has secured a non-interest bearing loan facility of up to £500,000 from Desmond Holdings Ltd ("Desmond"), a Hong Kong-based investment company (the "Desmond Loan").

Under the Desmond Loan, the Company may only make drawdowns in order to enter into investment agreements with three companies introduced by Desmond as designated in the Desmond Loan agreement. These investment agreements will be entered into should they comply with the Company's Investing Policy which is to provide funds to assist good quality and high growth companies achieve a listing for their shares on an appropriate stockmarket. The Company anticipates that should the relevant investment agreements be entered into it will make a profit in excess of £500,000 following the listings of the companies.

The Company has agreed to pay Desmond a fee of £120,000 for providing the Desmond Loan and conditional upon the Company entering into investment agreements with the three designated companies, such fee to be satisfied by the issue of such number of new ordinary shares in the capital of the Company as shall equate to 29.99 per cent. of the Company's then issued share capital (the "Fee Shares").The issue of the Fee Shares is conditional on the lifting of the suspension of trading in the Company's shares. In the event that the admission of the Company's shares is cancelled after monies have been drawn down against the Desmond Loan, the Desmond Loan will be repaid through the transfer of the benefit of those investments to Desmond. Amounts drawn down under the Desmond Loan are otherwise repayable within 12 months of the date of drawdown.

For further information please contact:

AIM Investments Plc

Alexandra Eavis

08702 701 111

Astaire Securities Plc (Nominated Adviser and Broker)

Gavin Burnell, Edward Hutton

020 7492 4750

www.aiminvestmentsplc.com

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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