22 Oct 2012 07:00
22 October 2012
PORTA COMMUNICATIONS PLC
("Porta" or the "Company")
Related Party Loan
The Company is pleased to announce that it has entered into a secured loan agreement with Hawk Investment Holdings Limited ("Hawk"), a company beneficially owned by Bob Morton (non-executive chairman of Porta) and his wife (the "Agreement"), for a principal amount of £500,000 (the "Loan"). The Loan will be used for working capital purposes. Interest under the terms of the Agreement will be charged at a monthly rate of 1 per cent., with a maturity date of 2 April 2013.
The Loan is provided in addition to previous outstanding financing arrangements provided by Hawk; being a convertible loan facility for £500,000 and a loan facility of £1,250,000, and two loan agreements between Hawk and WFCA plc ("WFCA") under which WFCA borrowed £450,000 in aggregate. Further details of these arrangements can be found in the offer document published on 17 August 2012 in connection with the recommended offer by the Company for entire issued share capital of WFCA.
Provision of the Loan is classified as a related party transaction under the Rule 13 of the AIM Rules for Companies. The independent directors of Porta (being the Board of the Company with the exception of Bob Morton, who is excluded from such decisions being a related party in respect of the Loan) consider, having consulted with the Company's nominated adviser, Northland Capital Partners Limited, that the terms of the Loan are fair and reasonable insofar as the independent shareholders of Porta (being the shareholders of the Company other than Hawk) are concerned.
Enquiries
Porta Communications plc www.portacomms.com | ||
David Wright, Chief Executive | +44 (0) 20 7680 6500 | |
Keith Springall, Finance Director | +44 (0) 20 7680 6500 | |
Northland Capital Partners |
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(Nominated Adviser and Broker) | Tim Metcalfe / Lauren Kettle | +44 (0) 207 796 8800 |
Newgate Threadneedle | Graham Herring, Managing Director | +44 (0) 207 653 9850 |
About Porta Communications
Porta Communications plc, the international marketing and communications business, is led by David Wright, Chief Executive. David is well known for establishing Citigate in late 1988. In 1997 he reversed Citigate into Incepta plc and David became Chief Executive of the enlarged Group, later becoming Chairman. By 2003, when David left Incepta, he had built one of the largest international financial communications companies in the world, through a series of key acquisitions and an active recruitment programme. Prior to Citigate he was Managing Director of Streets Financial Strategy from 1986 to 1988. David began his career as a journalist.
For further information, please visit www.portacomms.com