REG - Mobile Tornado Group - Assignment & variation of revolving loan facility

Mobile TornadoAnnouncement

30/08/2024 15:15

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RNS Number : 3778C  Mobile Tornado Group PLC  30 August 2024

30 August 2024

 

Mobile Tornado Group plc

("Mobile Tornado", the "Company" or the "Group")

 

Assignment and variation of revolving loan facility

 

Mobile Tornado (AIM: MBT), a leading provider of resource management mobile
solutions to the enterprise market, announces that the Company has today
varied the terms of its Revolving Loan Facility agreement (the "Facility
Agreement"), details of which were first announced by the Company on 27
September 2018.

 

The Facility Agreement was entered into with InTechnology Plc ("InTechnology")
and has today been assigned by InTechnology to Holf Investments Limited
("Holf"). Holf is 100% owned by Peter Wilkinson (Non-Executive Director of
Mobile Tornado) and his wife and is the vehicle through which Mr and Mrs
Wilkinson hold 49.90% of their total 75.90% interest in InTechnology's issued
share capital. This assignment follows the transfer of InTechnology's holding
in the Company's ordinary shares and redeemable preference shares to Holf, as
announced on 13 November 2023.

 

In addition to the assignment of the Facility Agreement from InTechnology to
Holf, the term of the Facility Agreement has been extended by 12 months to 26
September 2025.  As announced on 24 March 2022, the maximum principal amount
which may be drawn under the Facility Agreement is £500,000. All other terms
of the Facility Agreement remain unchanged, as follows:

 

·      Any amounts drawn down by the Company pursuant to the Facility
Agreement will bear interest at a rate of 10% per annum.

·      The Facility Agreement allows for monies to be drawn down, repaid
and redrawn again in any manner and any number of times by the Company until
the agreement expires.

·      At the expiration date of the Facility Agreement, all monies
shall be repayable by the Company together with any accrued interest thereon.

 

As at the date of this announcement, the amount drawn under the Facility
Agreement is £150,000 and accrued interest is £51,000.

 

Related party transaction

 

As InTechnology and Holf are related parties (as defined in the AIM Rules for
Companies ("AIM Rules")), the assignment of the Facility Agreement to Holf and
the variation to the terms of the Facility Agreement constitutes a related
party transaction under Rule 13 of the AIM Rules. The independent directors of
the Company (save for Peter Wilkinson, who is a controlling shareholder of
both InTechnology and Holf, and his son Luke Wilkinson) consider, having
consulted with the Company's nominated adviser, Allenby Capital Limited, that
the terms of the assignment of the Facility Agreement and the variation of the
Facility Agreement are fair and reasonable insofar as the Company's
shareholders are concerned.

 

Enquiries:

 

 Mobile Tornado Group plc                                  +44 (0)7734 475 888
 Jeremy Fenn, Chairman and acting CEO                      www.mobiletornado.com (http://www.mobiletornado.com/)

 Allenby Capital Limited (Nominated Adviser & Broker)      +44 (0)20 3328 5656
 James Reeve/Piers Shimwell (Corporate Finance)

 David Johnson (Sales and Corporate Broking)

 

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