RNS Number : 7328C
Invu plc
19 November 2009
19 November 2009
Invu plc
Loan agreements
Invu plc (LSE, AIM: INVU) ('the Company') announces that Tyne & Wear Holdings Limited ('Tyne & Wear') has agreed to provide a loan to the Company of £0.1 million and Magpie Investments Limited ('Magpie') has agreed to provide a loan to the Company of £0.5 million (together 'the Loan').
The terms of the Loan are the same as the Tyne and Wear loan facility of £0.4 million announced on 22 October 2009, except that the repayment date will be the earlier of the establishment of a new financing facility or 18 January 2010. The interest rate of 12.5% per annum for the Loan is calculated based on a margin over 3 month LIBOR. The Board announced on 15 October 2009 that it had agreed in principle to a new £1.5 million financing facility. This Loan is expected to cover the cash requirements of the Company prior to the completion of negotiations for the new facility. The Company will provide an update on this new facility as soon as possible.
Tyne & Wear has additionally agreed to extend the repayment date of the £0.4 million loan announced on 22 October to same date as that for the Loan.
Goldman Investments, a company whose majority shareholder is Daniel Goldman the Chairman of the Company, provides investment advice to both Tyne & Wear and Magpie. Given the potential conflict of interest arising from this relationship, Mr. Goldman has not participated in the negotiation or approval by the directors of the Facility.
Tyne & Wear is a substantial shareholder of the Company for the purposes of the AIM Rules for Companies ('AIM Rules') and, as such, is a related party of the Company.
The entering into of the Facility with Tyne & Wear is classified as a transaction with a related party for the purposes of the AIM Rules. In accordance with the AIM Rules, the directors of the Company, with the exclusion of Daniel Goldman, having consulted with the Company's nominated adviser, Canaccord Adams, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
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Invu plc
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020 7665 8900
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Daniel Goldman, Non Executive Chairman
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Colin Gallick, CEO
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Ian Smith, CFO
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Canaccord Adams
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020 7050 6500
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Simon Bridges
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Financial Dynamics
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020 7831 3113
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Juliet Clarke / Haya Herbert-Burns / Emma Appleton
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