Facility Agreement
27 May 2009 - 2:49AM
UK Regulatory
TIDMINVU
RNS Number : 8437S
Invu plc
26 May 2009
26 May 2009
Invu plc
Facility agreement
Invu plc (LSE, AIM: INVU) ("the Company") announces that it has entered into an
agreement with Tyne & Wear Holdings Limited ("Tyne & Wear") pursuant to which
Tyne & Wear has agreed to provide a term loan facility to the Company of up to
GBP0.5 million (the "Facility"). The interest rate under the Facility is
calculated based on a margin over 3 month LIBOR (with an initial rate of 12.5%)
and may reduce in certain circumstances. The Facility is repayable on or before
31 December 2010. The Board is considering options to further strengthen the
Company's balance sheet and will provide an update in due course.
Tyne & Wear is a substantial shareholder of the Company for the purposes of the
AIM Rules for Companies ("AIM Rules") and, as such, is a related party of the
Company. In addition, Tyne & Wear is ultimately wholly-owned by a discretionary
trust, the potential beneficiaries of which include Cynthia Goldman, the mother
of Daniel Goldman, the non-executive Chairman of the Company. Given the
potential conflict of interest arising from this relationship, Mr. Goldman has
not participated in the negotiation or approval by the directors of the
Facility.
The entering into of the Facility with Tyne & Wear is classified as a
transaction with a related party for the purposes of the AIM Rules. In
accordance with the AIM Rules, the directors of the Company, with the exclusion
of Daniel Goldman, having consulted with the Company's nominated adviser,
Arbuthnot Securities Limited, consider that the terms of the transaction are
fair and reasonable insofar as the Company's shareholders are concerned.
-ends-
Enquiries:
Invu plc 01604 859893
Bernard Fisher, Non-Executive Director
Colin Gallick, CEO
Financial Dynamics 020 7831 3113
Juliet Clarke / Haya Chelhot / Emma Appleton
Arbuthnot Securities 020 7012 2000
Tom Griffiths / Ben Wells
This information is provided by RNS
The company news service from the London Stock Exchange
END
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