Shareholder loan and related party transaction
Independent Resources Group PLC
("IRG" or "the Company")
Shareholder loan and related party transaction
Independent Resources plc (AIM:IRG) is pleased to announce that it has entered into a loan agreement ("Loan Agreement") with Brandon Hill Capital Limited ("Brandon Hill"), an existing shareholder in the Company, for an unsecured loan of £160,000 ("Loan") to fund short term working capital and outstanding financial obligations. Under the Loan Agreement, Brandon Hill will provide the full £160,000 in cash to IRG by 30 September 2016.
The key terms of the Loan pursuant to the Loan Agreement are as follows:
· Loan amount: £160,000;
· Annual interest rate: 15%;
· Term: 1 year (repayable on 28 September 2017; and
· The principal and accrued interest is payable in cash at the end of the term but may be repaid, at IRG's discretion, partially or in full, at any time prior to the end of the term, without incurring any penalty for such early repayment.
The Loan will principally be used to fund IRG's settlement of the outstanding TransGlobe Loan Note for US$100,000, as announced on 28 September 2016. The balance of funds will be used to meet IRG's near term funding requirements and provide additional working capital and liquidity to the Company. IRG continues to explore a range of funding options to secure its medium and longer term funding requirements including equity, debt and mezzanine funding.
Related Party Transaction
Brandon Hill Capital Limited hold 10.7% of IRG's issued ordinary share capital and as such is considered to be a related party of the Company as defined by the AIM rules. The Loan therefore constitutes a related party transaction pursuant to AIM rule 13.
The Directors of IRG, having consulted with the Company's nominated adviser, Panmure Gordon (UK) Limited, considers that the terms of the Loan are fair and reasonable insofar as its shareholders are concerned.
Greg Coleman, Chief Executive Officer of IRG commented:
"We are delighted to have secured this funding which enables the Company to meet its near term financing needs and provides the necessary capital to remove the previously outstanding debt to TransGlobe of circa $1.3 million, for a payment of just $100,000. We would like to thank our major shareholder Brandon Hill Capital for the support they have shown at this time. We continue to make good progress on our portfolio of assets, particularly in Egypt, where the Company continues to work closely with EGPC to resolve the final remaining issues to enable the Joint Venture to begin receiving revenues, which have been accruing since 1 July 2015. We look forward to updating the market in due course on this and other parts of the portfolio".
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, visit www.ir-plc.com or contact:
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Greg Coleman |
Independent Resources plc |
020 3367 1134 |
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Adam James |
Panmure Gordon (UK) Limited |
020 7886 2500 |
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(Nominated Adviser & Joint Broker) |
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Oliver Stansfield |
Brandon Hill Capital |
020 3463 5000 |
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Jonathan Evans |
(Joint Broker) |
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Simon Hudson |
Tavistock Communications |
020 7920 3150 |
This information is provided by RNS
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