KRM22 plc
("KRM22", the "Group" or the
"Company")
Loan Facility
Amendment
KRM22 plc, (AIM: KRM) the technology
and software investment company that focuses on risk management for
capital markets, announces that an interest repayment date has been
deferred in relation to the Company's £5.0m convertible loan
facility agreement (the "Facility"), entered into on 17 June 2023,
with Trading Technologies International, Inc. ("TT"), the Company's
largest shareholder, in which £4.5m has already been drawn down to
date.
As announced in the Company's
results for the year ended 31 December 2023, TT had provided the
Company with a letter of support confirming that TT would be
willing to enter into discussions with KRM22 around amending the
terms of the Facility to ensure that KRM22 does not breach the cash
covenant in the Facility.
Under the terms of the original
Facility, KRM22 has the ability to defer interest payments for the
initial 18 months (the "Initial Interest Period"), with the total
deferred interest in the Initial Interest Period being paid in two
equal instalments on the calendar quarters ending on the 18th and
21st month anniversary of the Facility, this being 31 December 2024
and 31 March 2025 respectively. KRM22 and TT have agreed that the
interest payment that was due on 31 December 2024 will now be due
for payment on 31 March 2025.
The amendment of the Facility will
allow the Company to conserve cash, ensuring greater financial
flexibility and stability for ongoing operations and future
initiatives while it continues to remain in active discussion with
TT.
Detail of the amended terms of the Facility
The Terms of the original Facility
were included in the Company's 'New Debt Facility' announcement
which was released in June 2023. The Facility remains at a maximum
of £5.0m which is secured on the Company's assets. Under the
original Facility it states that interest accruing in the first 18
months after the date of the Original Loan Agreement be paid (i)
fifty percent (50%) on the Quarter Date immediately following the
18-month anniversary of the date of the Original Loan Agreement
(being 31 December 2024), and (ii) fifty percent (50%) on the
Quarter Date immediately following the 21-month anniversary of the
date of the Original Loan Agreement (being 31 March 2025) with the
only amendment being the deferral of the first interest rate
payment to align with the second one due on the 31 March 2025.
The interest rate and the covenants remain as originally
agreed.
Related Party Transaction
TT is considered a "related party"
as defined under the AIM Rules as a result of its substantial
shareholding of 24.8 per cent. in the Company. The deferral of the
interest repayment date by TT and the amendment of the Facility
constitutes a related party transaction for the purposes of Rule 13
of the AIM Rules.
The Independent Directors, being Kim
Suter, Dan Carter, Garry Jones, Sandy Broderick and Steve Sparke,
consider, having consulted with the Company's nominated adviser for
the purposes of the AIM Rules, Cavendish, that the amended terms of
the Facility are fair and reasonable insofar as the Company's
shareholders are concerned.
The information communicated in this
announcement is inside information for the purposes of Article 7 of
Regulation 596/2014.
For
further information please contact:
|
KRM22
plc
Garry Jones, Chairman
Dan Carter, CEO
Kim Suter, CFO
|
InvestorRelations@krm22.com
|
|
Cavendish Capital Markets Limited (Nominated Adviser and Sole
Broker)
Carl Holmes / Rory Sale (Corporate
Finance)
Sunila de Silva (ECM)
|
+44 (0)20 7220
0500
|
About KRM22 plc
KRM22 is a closed-ended investment
company which listed on AIM on 30 April 2018. The Company has
been established with the objective of creating value for its
investors through the investment in, and subsequent growth and
development of, target companies in the technology and software
sector, with a focus on risk management in capital
markets.
Through its investments and the
Global Risk Platform, KRM22 helps capital market companies reduce
the cost and complexity of risk management. The Global Risk
Platform provides applications to help address firms' trading and
corporate risk challenges and to manage their entire enterprise
risk profile.
Capital markets companies' partner
with KRM22 to optimise risk management systems and
processes, improving profitability and expanding opportunities
to increase portfolio returns by leveraging risk as
alpha.
KRM22 plc is listed on AIM and the
Group is headquartered in London, with offices in several of the
world's major financial centres.
See more about KRM22 at
KRM22.com
