1 May 2018 07:00
This announcement contains inside information
NATURE GROUP PLC
("Nature Group" or the "Company")
Shareholder Loan
Nature Group PLC (AIM:NGR), the provider of port reception facilities and waste treatment solutions for the oil, marine and process industries, announces that it has entered into a Loan Agreement (the "Loan Agreement") with Fairweather & Sons Limited ("Fairweather & Sons"), a company controlled by the Fairweather family, an existing shareholder in the Company, pursuant to which Fairweather & Sons has made available a loan of £400,000 to the Company (the "Loan"). Under the terms of the Loan Agreement, interest is payable by the Company in respect of the Loan at an interest rate of 5% per annum, to be paid quarterly in arrears.
The Loan is repayable by the Company on or before 31 January 2019 or, if sooner, immediately upon release to it of proceeds currently held in escrow pursuant to the sale of the Company's Gibraltar operations, as announced on 16 January 2017. The Loan may also be repaid, in whole or in part, at the Company's discretion.
In connection with the Loan, the Company and Fairweather & Sons have entered into a Warrant Instrument (the "Warrant Instrument") pursuant to which Fairweather & Sons may subscribe for up to a maximum of 12,500,000 ordinary shares of 2 pence each in the Company (the "Ordinary Shares") at an exercise price of 3.2 pence per Ordinary Share. In the event that Fairweather & Sons exercises its rights under the Warrant Instrument, the balance outstanding under the Loan Agreement shall be reduced accordingly.
Trading of the Company's shares on AIM was suspended at the Company's request on 27 March 2018, following notification of a one off, immediate tax liability and pending further clarification of its financial position. The Loan provides the Company with sufficient short term liquidity to allow it to satisfy a number of near-term payment obligations, including the tax liability. In addition, the Board has secured an extension to the verbal waiver it announced on 7 March 2018 deferring the repayment of lease and debt financing facilities totalling £1 million provided to Nature Oil & Gas Holding until the end of June 2018.
However, the Company's financial position remains extremely difficult. The Board remains in negotiations with a number of parties about its future financing, structure and strategic direction. Such negotiations remain vital in securing the Company's future. Accordingly, trading in the Company's shares on AIM remains suspended pending clarification over the financial position of the Company. Further announcements will be issued in due course.
Berend van Straten, Chairman of Nature Group, commented:
"The Board of Nature Group is grateful to the Fairweather family for their considerable financial support for the Company at this time. The proceeds of the Loan will provide the Company with the ability to repay their immediate liabilities, whilst the Board acts to secure the long-term future of the Company. We would like to thank the many shareholders that have contacted the Board offering their continued support. The ongoing assistance provided by DNB bank is greatly appreciated whilst these issues are resolved by the Board."
For further information:
Nature Group PLC
Andreas Drenthen, CEO Tel: + 31 653261484
Berend van Straten, Chairman Tel: + 31 626805605
Cenkos Securities plc
Neil McDonald Tel: +44 (0)131 220 9771 / +44 (0)207 397 1953
Beth McKiernan Tel: +44 (0)131 220 9778 / +44 (0)207 397 1950
Pete Lynch Tel: +44 (0)131 220 9772
Nature Group is traded on the AIM market, (ticker: NGR). www.ngrp.com