CTGP Cartucho

RNS Number:9223V
Cartucho Group Ltd
02 May 2007


                             Cartucho Group Limited

                  ("Cartucho" or "the Company" or "the Group")

                           Re-financing arrangements



Further to the announcement made on 1 March 2007 and the announcement of the
Company's results for the year ended 31 December 2006 made earlier today,
Cartucho, a developer and manufacturer of ink refill kiosks, is pleased to
announce that its subsidiary company, Cartucho Holdings Limited ("CHL") has
signed an agreement for a secured revolving credit facility of up to US$4.5
million ("Loan Facility"). The purpose of the Loan Facility is (inter alia) to
permit the Company to refinance the costs of manufacturing, installing and
servicing kiosks and corporate overhead costs associated with such activities,
which the Directors consider is critical for the future of the Company. The
maturity date of all draw-downs made under the Loan Agreement is 1 September
2008 and all advances bear interest at a rate of 10 per cent. per annum.

The availability of draw-downs under the Loan Facility are subject to the
satisfaction of certain conditions. These relate (inter alia) to the release of
existing security, the provision of certain new security to the lender
(including by way of assignment of Intellectual Property rights, contracts and
security over the kiosks and other property) and the injection of a further loan
from certain of the initial shareholders of the Company (as described further
below).

In addition to certain strict financial and other covenants which require and
restrict certain actions by CHL, under the Loan Facility, CHL is required to
make representations and warranties to the lender all of which must be true and
correct at the time any advances are made under such agreement. Non compliance
with covenants and certain other conditions results in an event of default which
could result, inter alia, in the potential crystallisation of security provided
by CHL.

The Company is also pleased to announce that CHL has entered into a loan
agreement on an arms' length basis and on commercial terms with three of the
Company's initial shareholders comprising Roger Pellew (the CEO) ("RP"), David
Scanlan ("DS") and Anthony Irwin ("AI") ("Additional Loan"). The Additional
Loan (which is being made available in the proportions of 50% from AI and 25%
each from RP and DS) is for an aggregate sum of US$475,000, at an interest rate
of 3 per cent. per annum over the Bank of Scotland's base rate from time to
time.

Under Rule 13 of the AIM Rules for Companies, the entry into of the Additional
Loan is regarded as a related party transaction, since RP and AI are considered
to be related parties of the Company, being a director and a substantial
shareholder respectively.

As stated above, the ability of the Company to draw down under the Loan Facility
is subject to the satisfaction of certain conditions. Whilst the Directors are
confident that the necessary arrangements will be concluded shortly, in the
event that any such conditions cannot be satisfied and the Company is unable to
access funding under the Loan Facility, this could materially and adversely
affect the Company's ability to continue trading.

Further, the Company has today, entered into a deed of release with Collins
Stewart Europe Limited, Hamilton Marketing Inc. ("Hamilton") and Christopher
Burton, pursuant to which the 17,265,306 shares beneficially held by Hamilton,
which are currently subject to an escrow arrangement as detailed in a placing
agreement dated 9 December 2005, are to be released from escrow  Further, it has
been agreed by Hamilton that such shares are to be sold to AI (further to AI's
agreement to contribute to the Additional Loan). Following such sale the
Directors understand that AI will have an interest in 26,102,141 shares
representing 29.0% of the issued share capital of the Company and Hamilton will
cease to have any disclosable interest. The early release of Hamilton, a
substantial shareholder, from the escrow arrangements, may also be considered a
related party transaction by the Company.

The Directors of the Company (excluding RP), consider, having consulted its
nominated adviser, that the terms of the Additional Loan and the release of the
shares from escrow are fair and reasonable insofar as the Company's shareholders
are concerned.





For further information:


Cartucho Group Limited
Roger Pellew, Chief Executive                              Tel:  +1 585 771 0665
rogerpellew@cartucho.com                                        www.cartucho.com

Collins Stewart Europe Limited         
Adrian Hadden                                         Tel:  +44 (0) 207 523 8353
AHadden@collins-stewart.com

Media enquiries:

Abchurch
Chris Lane                                             Tel: +44 (0) 20 7398 7700
chris.lane@abchurch-group.com                             www.abchurch-group.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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