REG - Mobile Tornado Group - Grant of security

Mobile TornadoAnnouncement

08/01/2025 15:45

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RNS Number : 6357S  Mobile Tornado Group PLC  08 January 2025

8 January 2025

 

Mobile Tornado Group plc

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

 

Grant of security

 

Mobile Tornado (AIM: MBT), a leading provider of resource management mobile
solutions to the enterprise market, announces that it has entered into an
agreement with Holf Investments Limited ("Holf") to grant security (the
"Security") to Holf for the payment and discharge of all present and future
obligations and liabilities of the Company to Holf. At present, this includes
outstanding loan and trade creditor agreements, a working capital facility and
the sums due and to be paid in relation to the preference shares in the
Company held by Holf (the "Liabilities"). The Security is in the form of a
fixed and floating charge over the assets of the Company.

The Liabilities owed by the Company to Holf currently total approximately
£12.2 million, consisting of: £5.7 million of redeemable preference shares;
£3.7 million of accrued preference share coupon and interest; £2.0 million
of short-term borrowings; a current account, representing primarily rent and
service fees due to Holf, of £0.7 million and an amount drawn on the working
capital facility of £0.1 million.

The Liabilities were previously owed by the Company to InTechnology Plc
("InTechnology") but, as has been announced, these Liabilities have since been
assigned by InTechnology to Holf. A debenture charge, which has no material
difference to the Security, was granted by the Company to InTechnology in 2011
to cover the respective liabilities held by InTechnology at that time. This
debenture charge remains in place but has no substance since the Company has
no outstanding liabilities to InTechnology. The Security acts as a replacement
for the existing InTechnology debenture charge. In due course, the Company
will take steps to discharge the InTechnology charge.

Holf is 100% owned by Peter Wilkinson (former Non-Executive Director of Mobile
Tornado) and his wife and it holds a 46.93% interest in Mobile Tornado's
issued share capital. Peter Wilkinson has a total direct and indirect
beneficial interest in 244,134,455 Ordinary Shares, representing 55.62% of
Mobile Tornado's issued share capital.

Related party transaction

As Holf is a related party (as defined in the AIM Rules for Companies ("AIM
Rules")), the grant of the Security to Holf constitutes a related party
transaction under Rule 13 of the AIM Rules. The independent directors of the
Company (save for Luke Wilkinson, son of Peter Wilkinson) consider, having
consulted with the Company's nominated adviser, Allenby Capital Limited, that
the terms of the grant of the Security 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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