REG - Plexus Holdings Plc - £700,000 Loan Agreements Signed

Plexus HoldingsAnnouncement

18/09/2023 07:00

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RNS Number : 6841M  Plexus Holdings Plc  18 September 2023

 

Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment &
services

 

This announcement contains inside information

 

18 September 2023

 

 

 

 

Plexus Holdings PLC

 ('Plexus' or 'the Company')

 

 £700,000 Loan Agreements Signed

 

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business
and owner of the proprietary POS-GRIP® friction-grip method of wellhead
engineering, known for its safety, time, and cost-saving capabilities is
pleased to announce that Plexus has entered into loan agreements with a total
value of £700,000 (the "Transaction"), with the funding to be used to provide
additional working capital for the Company as it seeks to capitalise on its
growing pipeline of opportunities and potential orders.

Terms of the Loans

Plexus has entered into a £200,000 loan with the Company's CEO, Ben van
Bilderbeek, and a £500,000 loan with Plexus Property International Limited
("PPI"), a company owned and controlled by OFM Limited a company in turn
controlled by the van Bilderbeek family and related trusts., (together, the
"Loans").  The Loans accrue interest at a rate of 8 per cent. per annum and
the balance, plus any interest accrued, is repayable after 12 months.

Alongside the loan agreements, the Company has also entered into Primary and a
Secondary call option agreements ("Option Agreements") with Ben van Bilderbeek
and PPI (the "Lenders"). These Option Agreements provide the Lenders with the
right to exercise an option to have their portion of the Loans repaid in
shares owned by Plexus Ocean Systems Limited ("POSL") in Kincardine
Manufacturing Services Limited ("KMS"), a precision engineering company in
which Plexus holds a 49% interest following a strategic investment in December
2018.

In 2018, Plexus invested £735,000 to acquire a 49% interest in KMS, which at
31 December 2022 was valued at £838k and held as an investment in an
associate of the Company.  Ahead of the Transaction, the Company commissioned
an independent valuation of its stake in KMS, following which the independent
directors have concluded that a valuation of £1m should be applied to the
Company's KMS shares for the purposes of the Options Agreements.

The right under the Primary option agreement to accept KMS shares as repayment
for the Loans expires after 12 months and applies for up to a maximum of 70%
of POSL's 49% KMS shareholding.  In the event that the Lenders exercise the
option at any time within 12 months, the Secondary option agreement provides
them with the right to acquire the remaining 30% of the KMS shares held by
Plexus on the same terms for an additional period of 6 months.

Related Party Transaction

The Transaction is deemed to be a related party transaction for the purposes
of the AIM Rules for Companies. The independent Directors (being all directors
other than Ben van Bilderbeek) consider, having consulted with the Company's
nominated adviser, Cavendish Securities plc, that the terms of the Transaction
are fair and reasonable insofar as the Company's shareholders are concerned.

 

The Company announces that its nominated adviser and broker has changed its
name from Cenkos Securities plc to Cavendish Securities plc following
completion of its own corporate merger.

 

**ENDS**

 

For further information please visit www.plexusplc.com
(http://www.plexusplc.com) or contact:

 

 Plexus Holdings PLC       Tel: 020 7795 6890

 Ben van Bilderbeek, CEO

 Graham Stevens, CFO

 Cavendish Securities plc  Tel: 0131 220 6939

 Derrick Lee

 Adam Rae

 St Brides Partners Ltd    plexus@stbridespartners.co.uk

 Isabel de Salis

 Ana Ribeiro

 Max Bennett

 

NOTES

 

Plexus Holdings plc (AIM: POS)

Plexus is an IP led company focussed on establishing its patented leak-proof
POS-GRIP® wellhead and associated equipment as the go-to technology for
energy markets whilst making a genuine contribution to the oil and gas
industry's ESG and NetZero goals by championing "through the BOP" (Blow-out
Preventer) designs, and lifetime leak-proof HG® metal-to-metal sealing
systems.  Having protected the environment for many years through these
technological innovations, the Company was awarded the London Stock Exchange's
Green Economy Mark in July 2021 and continues to place emphasis on its ability
to reduce harmful methane emissions and unnecessary maintenance and
intervention costs.

 

Headquartered in Aberdeen, the Company has provided leak-free wellhead
performance in over 400 wells worldwide and worked with an array of blue-chip
oil and gas company clients.  As well as generating direct revenues from
securing orders for surface production wellheads particularly in the UK and
European North Sea regions, the Company has several licencing/collaboration
agreements with major partners including FMC Technologies, which is a
subsidiary of TechnipFMC and Cameron, a Schlumberger Group company. Cameron
has a non-exclusive licence to use the POS-GRIP and HG® metal-to-metal seal
method of wellhead engineering for the development of conventional and
unconventional oil and gas surface wellheads, and Plexus entered into a
Cooperation Agreement,

 

 

which enabled Plexus to return to the Jack-up Exploration (Adjustable)
Wellhead rental business for 'through the BOP' jack-up applications, where
Cameron will help to provide Plexus with sales leads and market insight
through a formal Sales Advisory Board.

 

Plexus' current suite of products and applications include: "HG" wellheads,
which combine POS-GRIP technology with gas tight leak free metal-to-metal
sealing; the Python® subsea wellhead, developed in a Joint Industry Project
with several industry leaders; the POS-SET™ Connector for the
de-commissioning and abandonment market; and Tersus-PCT, an innovative HP/HT
tie back connector product. Having proved the superior uniquely enabling
qualities of POS-GRIP Technology, Plexus is now also focused on establishing
its technology and equipment in other markets such as Plug and Abandonment
de-commissioning, carbon capture, gas storage, hydrogen and geothermal where
it can play an important role in reducing harmful methane emission risks as
operators strive to deliver on ESG commitments and NetZero goals in a safe and
cost-effective way.

 

For more information visit: https://www.plexusplc.com/
(https://www.plexusplc.com/)

 

 

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