REG - Mobile Tornado Group - Variation to loan facility and notice of results

Mobile TornadoAnnouncement

24/03/2022 07:01

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RNS Number : 8295F  Mobile Tornado Group PLC  24 March 2022

24 March 2022

 

Mobile Tornado Group plc

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

 

Variation to revolving loan facility and notice of results

 

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

 

The Facility Agreement was due to expire on 26 September 2022 and has been
extended for a further 12 months until 26 September 2023. In addition, the
maximum principal amount which may be drawn under the Facility Agreement has
been increased from £300,000 to £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 to InTechnology together with any accrued
interest thereon.

·      A 2% facility fee is payable on any new amounts drawn down by the
Company pursuant to the Facility Agreement. The facility fee is only payable
in respect of amounts drawn under the additional £200,000 provided pursuant
to the variation of the Facility Agreement and any monies repaid and
subsequently redrawn will not incur a further facility fee.

 

As at the date of this announcement, the amount drawn under the Facility
Agreement is £300,000.

 

The additional capital will support the financing of the Company's continued
investment in its R&D activities, principally the development of its
comprehensive Resource Management Platform, an update on which will be
provided in the Company's annual results to be announced on 31(st) March
2022.

 

As InTechnology is a substantial shareholder in the Company (as defined in the
AIM Rules for Companies ("AIM Rules")), 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 InTechnology), having consulted
with the Company's nominated adviser, Allenby Capital Limited, consider the
variation to the terms of the Facility Agreement to be fair and reasonable
insofar as the Company's shareholders are concerned.

 

 

Enquiries:

 

 Mobile Tornado Group plc                                   +44 (0)7734 475 888
 Jeremy Fenn, Chairman                                      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)

 Walbrook PR Ltd                                            +44 (0)20 7933 8780
 Nick Rome/Paul Vann                                        mobiletornado@walbrookpr.com

 

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