26 Apr 2018 07:00
Koovs plc (the "Company")
Loan agreement and related party transaction
Loan agreement
Koovs plc today announces that it has agreed a secured loan of up to £1.5m from Lord Waheed Alli, a director of the Company, as it progresses its capital raising to raise up to £50 million to fund the Company's strategic acceleration plan (as previously announced on 1 March 2018).
Lord Waheed Alli said: "The opportunity for Koovs in India is clear and I am pleased to continue to support the Company during the time it needs to progress ongoing funding discussions."
Mary Turner, CEO, said: "We are excited by the accelerated strategic plan we have for the business to deliver scale and profitability, and we believe this loan will provide the cash runway required to complete the next round of capital investment needed to deliver our plan."
The secured loan has a one-year term at an annual interest rate of 6% + LIBOR.
Related party transaction
Lord Waheed Alli, as a director of the Company and a substantial shareholder in the Company, is a "related party" for the purposes of Rule 13 of the AIM Rules for Companies ("AIM Rules").
The directors of the Company (excluding Lord Waheed Alli), having consulted with Peel Hunt LLP in its capacity as the Company's nominated adviser for the purposes of the AIM Rules, consider the terms of the transaction to be fair and reasonable insofar as shareholders are concerned.
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