Logistics Development Group PLC Investment in PIK Loan (6961X)
06 May 2021 - 4:00PM
UK Regulatory
TIDMLDG
RNS Number : 6961X
Logistics Development Group PLC
06 May 2021
Logistics Development Group plc
(the "Company" or "LDG")
06 May 2021
Investment in PIK Loan
Logistics Development Group plc, the AIM investing company,
announces the acquisition of an economic interest in the PIK loan
facility entered into at the time of the Company's December 2019
financing ("PIK Loan"). The interest has been acquired through an
equity investment in Alpha Persei Limited ("Alpha"), the company
holding 100% of the PIK Loan.
LDG investment in the PIK Loan
As part of the December 2019 financing transaction, funds
managed by DBAY Advisors Limited ("DBAY") agreed to provide the
Company with the opportunity to participate in an economic interest
of up to 49% of the PIK Loan. Following the successful LDG fund
raise in December 2020, the Company decided to exercise its rights
to acquire a portion of the PIK Loan and accordingly has acquired
six million ordinary shares in Alpha for consideration of GBP6
million, giving it a 10.9% legal and beneficial interest in Alpha.
Accordingly, the Company now has an indirect economic interest of
GBP6 million equivalent of PIK Loan through this ownership in
Alpha. This further aligns the economic interests of DBAY and the
Company's shareholders, allowing the Company to participate in the
interest accruing on the PIK Loan.
Further details on the PIK loan and the December 2019 financing
arrangements can be found within the Company's annual report for
the twelve months ended 30 November 2020.
Related Party Transaction
Saki Riffner, is a director of the Company and a partner in
DBAY. The Company is making an investment in Alpha, a company
managed and controlled by DBAY. DBAY controls funds which are
significant shareholders in LDG and is appointed as the investment
manager for LDG. The investment in Alpha referred to above is
therefore classified as a related party transaction for the
purposes of the AIM Rules. The Independent Directors being Adrian
Collins, Stephen Harley and David Facey, having consulted with
Cenkos Securities, the Company's nominated adviser, consider that
the terms of the transaction are fair and reasonable insofar as the
Company's Shareholders are concerned.
Further enquiries:
Logistics Development Group plc via FTI Consulting
FTI Consulting (0)20 3727 1340
Nick Hasell / Alex Le May
Cenkos Securities Plc (Nomad & Broker) (0)20 7397 8900
Nicholas Wells / Giles Balleny
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END
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