REG - Cloudcoco Group PLC - Board Change, Loan Note Extension & Trading on AIM

CloudcocoAnnouncement

30/04/2024 07:00

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RNS Number : 4993M  Cloudcoco Group PLC  30 April 2024

The information contained within this announcement is deemed by CloudCoCo to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.

 

 

30 April 2024

CloudCoCo Group plc

("CloudCoCo", the "Company" or the "Group")

 

Board Change, Extension of Loan Notes and Lifting of Temporary Suspension of
Trading on AIM

 

CloudCoCo (AIM: CLCO), a leading UK provider of managed IT services and
communications solutions to private and public sector organisations, today
announces that Mark Halpin has stepped down from the Board and his position as
Chief Executive Officer with immediate effect.

 

The Company also announces it has reached agreement with its loan note holder,
MXC Guernsey Limited ("MXCG"), to extend the redemption date of the loan notes
from 21 October 2024 to

31 August 2026 (the "Loan Note Extension").  Interest will continue to accrue
on the loan notes at the current rate of 12 per cent until redemption. All
other terms of the loan notes remain the same.

 

As consideration for the extension, effective from 22 October 2024, MXCG will
charge the Company a fee of £550,000. Payment of this fee will be deferred
until the redemption of the loan notes and it will accrue interest at the same
rate as the loan notes. MXCG will also have the right to appoint a consultant
to, or an Executive Director of, the Company's Board in addition to its
current non-executive representative and will have the right at any time to
increase its loan security in the form of a full debenture over all Group
Companies.  The loan notes are currently unsecured and the amount outstanding
is £5.85 million, including accrued interest.

 

Accordingly therefore, Ian Smith (CEO of MXC Capital Limited, the parent of
MXCG) will join CloudCoCo, initially as a consultant to the Board, acting as
Interim CEO of the Group's trading entities. The Board will seek to appoint a
new CEO of the Group as soon as possible.

 

As MXC Capital Limited is a shareholder of 10.63% of CloudCoCo, the Loan Note
Extension is a related party transaction pursuant to the AIM Rules for
Companies.  The directors of CloudCoCo who are independent of the
transaction, being all the directors save for Jill Collighan, consider, having
consulted with the Company's Nominated Adviser, Allenby Capital Limited, that
the terms of the Loan Note Extension are fair and reasonable insofar as
shareholders are concerned.

 

Lifting of Temporary Suspension of Trading on AIM

 

Following the publication this morning of the Company's results for the year
ended 30 September 2023, the temporary suspension of the Company's securities
from trading on AIM is expected to be lifted at 07.30 a.m. today, 30 April
2024.

 

Simon Duckworth, Non-Executive Chair, commented:

 

"We thank Mark for his service to the business during a period of both organic
and acquisitive growth and wish him well with his future endeavours.

 

"We are pleased that we have been able to secure an extension to the loan
notes with MXCG.  This, together with the publication this morning of a solid
set of results for FY23, will give our staff, customers and suppliers
confidence over the immediate future of the business. We look forward to
working with Ian and utilising his vast experience in the IT services market
as we review the Company's strategy for its next phase of development".

 

Contacts:

 

 CloudCoCo Group plc                                          Via Alma

 Simon Duckworth (Non-Executive Chair)

 Darron Giddens (CFO)

 Allenby Capital Limited - (Nominated Adviser & Broker)       Tel: +44 (0)20 3328 5656

 Jeremy Porter/Daniel Dearden-Williams (Corporate Finance)

 Tony Quirke/Amrit Nahal (Equity Sales)

 Alma - (Financial PR)                                        Tel: +44 (0)20 3405 0205

 David Ison                                                  cloudcoco@almastrategic.com

 Kieran Breheny

About CloudCoCo

 

Supported by a team of industry experts and harnessing a diverse ecosystem of
partnerships with blue-chip technology vendors, CloudCoCo makes it easy for
private and public sector organisations to work smarter, faster and more
securely by providing a single point of purchase for their Connectivity,
Multi-Cloud, Collaboration, Cyber Security, IT Hardware, Licencing, Support
and Professional Services.

 

CloudCoCo has headquarters in Leeds and regional offices in Warrington,
Sheffield and Bournemouth.

 

www.cloudcoco.co.uk (http://www.cloudcoco.co.uk)

 

 

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