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

DCI AdvisorsAnnouncement

17/07/2024 11:00

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RNS Number : 7806W  DCI Advisors Limited  17 July 2024

DCI Advisors Ltd

(the "Company" or "DCI")

Further Shareholder Loan and Related Party Transaction

 

17 July 2024

 

The Board of the Company has entered into another loan agreement for
€350,000 with Discover Investment Company ("DIC") to provide additional
working capital to the Company (the "Shareholder Loan"). DIC has previously
entered into a loan agreement with the Company for €350,000 in May 2023. To
date, the Company has received 13 loans from different shareholders amounting
to approximately €3.46 million. As previously announced, 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 c.€3.81 million in aggregate.

 

Related Party Transaction

 

The new Shareholder Loan agreement has been entered into with DIC who are
considered a related party by virtue of Nicolai Huls, Managing Director of the
Company, also being a Director of DIC. Accordingly, the entering into of the
new Shareholder Loan agreement is deemed to be related party transaction
pursuant to AIM Rule 13 of the AIM Rule for Companies. The Company's directors
(excluding Nicolai Huls) consider, having consulted with the Company's
Nominated Adviser, Cavendish Capital Markets Limited, that the terms of the
new Shareholder Loan agreement is 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 / Nick Paris, Managing Directors                          nickparis@btinternet.com

                                                                        +44 (0) 7738 470550
 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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