REG - Catenai PLC - Working Capital Loan and Related Party Transaction

CatenaiAnnouncement

14/01/2025 12:45

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RNS Number : 2931T  Catenai PLC  14 January 2025

14 January 2025

Catenai PLC

 

("Catenai", or the "Company")

 

Working Capital Loan and Related Party Transaction

 

Catenai PLC (AIM: CTAI), the AIM quoted provider of digital media and
technology, announces that it has entered into loan agreements to provide the
Company with £100,000 of funding ("Loan Agreements").

 

Working Capital Loan

In order to support its own working capital, Catenai has entered into Loan
Agreements with certain existing shareholders and a new party to provide
£100,000 in loans on the following terms:

 

●    An arrangement fee of 10% of the loan commitment ("Fee") added to
the loan balance.

●    No interest charged until 1 November 2025 by when it is expected
that the loan will have been repaid, if not thereafter at 0.5% per calendar
day, on the outstanding balance.

●    Immediate advance of £10,000 due by 31 January 2025 with nine
additional monthly drawdowns of £10,000 from January 2025.

●    Upon repayment of the Fee and loan commitment, 33,333,334 warrants
over new ordinary shares exercisable at a price of 0.3 pence per share for a
period of two years from the date of repayment, will be issued to the lenders.
A further announcement will be made on issue of the warrants ("Warrants").

 

Related Party Transaction

Sanderson Capital Partners Ltd are providing £25,000 under a Loan Agreement
and will receive 8,333,333 Warrants upon repayment.

 

The Loan Agreement which has been entered into between the Company and
Sanderson Capital Partners Ltd constitutes a related party transaction for the
purposes of Rule 13 of the AIM Rules by virtue of Sanderson Capital Partners
Ltd being a shareholder of more than 10% of the Company's current issued share
capital (the "Transaction"). Brian Thompson and John Farthing, being
independent directors of the Company, having consulted with the Company's
nominated adviser, Cairn Financial Advisers LLP, consider that the terms of
the Transaction are fair and reasonable in so far as the Company's
shareholders are concerned.

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation. The person who arranged for release of this
announcement on behalf of the Company was John Farthing, Interim Chief
Executive Officer of the Company and the Directors of the Company are
responsible for the release of this announcement.

 

 

For further information please contact:

 

 Catenai PLC                                        +44 (0)20 7183 8666
 John Farthing, Interim Chief Executive Officer

 Cairn Financial Advisers LLP (Nominated Adviser)   +44 (0)20 7213 0880
 Liam Murray / Ludovico Lazzaretti / James Western

 Shard Capital Partners LLP (Broker)                +44 (0)20 7186 9952
 Damon Heath

Notes to Editors:

 

About Catenai PLC

Catenai is an AIM quoted provider of digital media and technology services.
The Company has an experienced IT team of project managers and integrators who
have deployed systems across corporate, government and educational sectors.

www.catenaiplc.com (http://www.catenaiplc.com)

 

 

 

 

Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

 

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