REG - DCI Advisors Ltd - Shareholder Loan & Related Party Transaction

DCI AdvisorsAnnouncement

16/04/2024 12:45

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RNS Number : 8367K  DCI Advisors Limited  16 April 2024

DCI Advisors Ltd

(the "Company" or "DCI")

Further Shareholder Loan and Related Party Transaction

 

16 April 2024

 

The Board of the Company has entered into another loan agreement for
€100,000 with a DCI shareholder to provide additional working capital to the
Company (the "Shareholder Loan").  To date, the Company has received eight
loans of €350,000 each, two loans from funds managed by a single shareholder
amounting to US$330,000 in aggregate and one loan of €100,000. The first six
loans made up to September 2023 have identical terms to one another (other
than their date of initiation and currency of denomination) and are for a
12-month term bearing an interest rate of 12 per cent. p.a., with no fees
payable on disbursement or repayment. Shareholder Loans made after September
2023 have identical terms with the previous loans, except that there is no
right of prepayment by the Company and they will therefore last 12 months. The
Company's intention is to repay all outstanding Shareholder Loans from the
proceeds of the sale of Company assets. When combined with the Shareholder
Loans announced previously, all of the Shareholder Loans received to date are
now expected to total up to €3.3 million in aggregate.

 

Related Party Transaction

 

The new Shareholder Loan agreement has been entered into with Nick Paris who
is a co-Managing Director of the Company and who controls 0.18% of the issued
share capital of the Company. Accordingly, the entering into of the
Shareholder Loan agreement with him is deemed to be a related party
transaction pursuant to AIM Rule 13 of the AIM Rule for Companies. The
Company's directors (excluding Nick Paris) consider, having consulted with the
Company's Nominated Adviser, Cavendish Capital Markets Limited, that the terms
of the Nick Paris Shareholder Loan agreement are fair and reasonable insofar
as the shareholders are concerned.

 

As previously announced, collateral in the form of security over certain
Company assets will be put in place using normal commercial terms which will
exceed the aggregate value of each of the loans. In addition, the Board has
agreed that the Company will guarantee the repayment of the latest loan and
all Shareholder Loans received to date. A further announcement will be made
once the Company has entered into the new security agreements.

 

 

 

 

Enquiries

 DCI Advisors Ltd

 Nicolai Huls, Managing Director                                        n.huls@pbbresearch.com

                                                                        + 316 156057 45
 Cavendish Capital Markets (Nominated Adviser & Broker)

 James King / Jonny Franklin-Adams / Edward Whiley / Oscar Valeur-Adu
 (Corporate Finance)

                                                                      +44 (0) 20 7220 0500
 Pauline Tribe (Sales)
 FIM Capital Limited (Administrator)                                    llennon@fim.co.im (mailto:llennon@fim.co.im) / gdevlin@fim.co.im

                                                                      (mailto:gdevlin@fim.co.im)
 Lesley Lennon / Grainne Devlin (Corporate Governance)

 

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