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6 Aug 2008 07:00
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Crimson Tide PlcΒ
("Crimson Tide" or the "Company")
Borrowing Facility
The Company announced on 23 April 2008 that in addition to a placing raising Β£300,000 before expenses, it was also in advanced negotiations to secure a borrowing facility of up to Β£600,000 to finance growth in contracted business, with an associated option to subscribe for 24,615,385 ordinary shares, exercisable at a price of 1.21875p.Β These fundsΒ are requiredΒ to continue theΒ growth andΒ development of the businessΒ (due to the need to purchase technical equipment and software licences upfront)Β and for general working capital purposes.
The CompanyΒ is pleased to announceΒ that it has secured a borrowing facility with the Goodwin Accumulation and Maintenance Trust (a trust ofΒ which StephenΒ Goodwin, Chief Executive of the Company is a trustee)Β (the "Lender")Β for up to Β£300,000 with an 18 month term at a fixed interest rate of 12.5 per cent.Β The facility has an associated option to purchase ordinary shares up to a value of 50 per cent. of the loan facility at an exercise price of 1.21875pΒ which lapses in 18 months from the date of the agreement. There is also an option for the LenderΒ to participate inΒ any issue of ordinary sharesΒ ifΒ new ordinary shares are issuedΒ atΒ aΒ price lower thanΒ theΒ option price,Β in order for the LenderΒ to maintainΒ itsΒ percentageΒ holding.
Pursuant to Rule 13 of the AIM RulesΒ for Companies, the provision of the borrowing facility by the Goodwin Accumulation & Maintenance Trust (of which StephenΒ Goodwin is a trustee) constitutes a related party transaction. The Board of the Company (excluding the aforementioned Director), having consulted with W.H. Ireland Limited, the Company's Nominated Adviser, considers that the terms of the borrowing facility and the participation of the related party are fair and reasonable insofar asΒ its shareholders are concerned.
BarrieΒ Whipp, Executive Chairman said:
"I am delighted we have concluded this facility with the Goodwin Accumulation & Maintenance Trust. The facility allows us to finance the upfront costs of our long term contracts which continue to grow, both in volume and term. It is also pleasing to note Stephen Goodwin's confidence, as CEO, in the continuing development of the business."
Enquiries:
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Crimson Tide Plc
Barrie Whipp, Executive Chairman
www.crimsontide.co.uk
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01892 542 444
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W.H. Ireland
Katy Birkin
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0121 265 6330
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Threadneedle Communications
Graham Herring
Josh Royston
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020 7653 9850
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