REG - Mercantile Ports&Log - Related Party Transaction

Mercantile Ports & LogisticsAnnouncement

27/06/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240627:nRSa0397Ua&default-theme=true

RNS Number : 0397U  Mercantile Ports & Logistics Ltd  27 June 2024

27 June 2024

 

 

Mercantile Ports & Logistics Limited

 

("MPL" or the "Company")

 

Related Party Transaction

Mercantile Ports & Logistics (AIM: MPL), which is operating and continuing
to develop a port and logistics facility in Navi Mumbai, Maharashtra, India,
announces that it has today entered into an unsecured loan and credit facility
agreement for £15 million with KJS Concrete Private Limited (a subsidiary of
Hunch Ventures) to provide additional working capital headroom to the Company
(the "New Shareholder Loan").

Hunch Ventures, as previously announced, entered into an unsecured loan
agreement for £4.4 million on 19 August 2021 with the Company's India
subsidiary, KTLPL, for the purposes of KTLPL's business operations (the
"Existing Loan"). The Existing Loan, that remains fully undrawn, is today
cancelled and superseded by the New Shareholder Loan.

The New Shareholder Loan for £15 million can be drawn down in one or more
tranches between 1 June 2024 and 31 December 2027 and is repayable by 31
December 2027. If drawn down, interest will be payable on the New Shareholder
Loan at the same rate as the Existing Loan, being a rate of 8 per cent. per
annum.

 

Related Party Transactions

 

The New Shareholder Loan agreement has been entered into with Hunch Ventures.
Hunch Ventures, an undertaking controlled by Karanpal Singh (a Non-Executive
Director of the Company) and his wife Ms. Himangini Singh, is a Substantial
Shareholder in the Company as it holds 38.4% of the Existing Ordinary Shares.

Where a company enters into a related party transaction, under the AIM Rules
the independent directors of the company are required, after consulting with
the company's nominated adviser, to state whether, in their opinion, the
transaction is fair and reasonable in so far as its shareholders are
concerned.

The New Shareholder Loan outlined above constitutes a related party
transactions pursuant to Rule 13 of the AIM Rules. The Company's directors
(excluding Karanpal Singh) consider, having consulted with the Company's
Nominated Adviser, that the terms of the New Shareholder Loan agreement are
fair and reasonable insofar as the Company's shareholders are concerned.

This announcement contains inside information.

 

 

- Ends -

 

For further information, please visit www.mercpl.com or contact:

 

 MPL                                c/o SEC Newgate

                                    +44 (0) 20 3757 6880
 Cavendish Capital Markets Limited  Stephen Keys

 (Nomad and Broker)                 +44 (0) 207 220 0500
 SEC Newgate                        Elisabeth Cowell/ Bob Huxford

 (Financial Communications)         +44 (0) 20 3757 6880

                                    mpl@newgatecomms.com

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRQQLFLZQLXBBK