Parallel Media Group PLC Loan Funding Agreements (6638J)
30 June 2017 - 4:00PM
UK Regulatory
TIDMPAA
RNS Number : 6638J
Parallel Media Group PLC
30 June 2017
30 June 2017
Parallel Media Group Plc ("PMG" or the "Group")
Loan Funding Agreements
Parallel Media Group Plc (AIM: PAA), a leading event marketing
and media agency announces that, on 29 June 2017, it entered into
agreements (the "Loan Agreements") in relation to existing and new
loans advanced by David Ciclitira (the "DC Loans"), the Chairman of
the Group, and entities controlled by David Ciclitira (together,
the "DC Entities").
As previously notified by PMG, the DC Entities have, where
necessary, advanced loans to PMG to meet the contractual
obligations of the Group. To date there have been no formal terms
for the loans and it had been agreed between David Ciclitira and
the independent directors (at the time of the loans) that the loans
would not carry interest and would be repayable upon demand. The
Loan Agreements will now formalise arrangements on the DC
Loans.
Existing Loans
Pursuant to the Loan Agreements relating to the existing loans,
interest is payable at 5 per cent. per annum, commencing on 1
January 2017, and will be rolled up into the loan principal. The
total outstanding sums shall be repayable on 1 July 2018, or at an
earlier date at the discretion of the Group. The Existing Loan
Agreements comprise:
- GBP274K in relation to loans advanced by David Ciclitira
- GBP1,202K in relation to loans advanced by Parallel
Contemporary Art Limited, a company controlled by David Ciclitira
;
- GBP159K in relation to loans advanced by Luna Trading Limited,
a company controlled by David Ciclitira ; and
- The total rolled up interest on these loans at 5% per annum
since 1 January, 2017 amounted to GBP38K.
New Loan
Additionally, David Ciclitira has advanced a further GBP231K to
the Group (the "New Loan Agreement") to allow PMG to fully repay
its debt facility with Lloyds Bank which had previously carried an
interest charge of 4% above base. This advance comprises GBP213K in
relation to the Lloyds Bank facility and GBP18K in relation to
legal fees and costs incurred to facilitate the repayment.
The New Loan Agreement will carry interest at 5 per cent. per
annum, commencing on 1 July 2017, which will be rolled up into the
loan principal. The total outstanding sums shall be repayable on 1
July 2018, or at an earlier date at the discretion of the Group
The total balance outstanding under the Loan Agreements by the
DC Entities, including rolled up interest since 1 January 2017, as
described above, amounts to approximately GBP1,904K.
Related Party Transactions
The Loan Agreements are deemed to be a related party
transactions under the AIM rules for Companies. The independent
director, Ranjit Murugason, considers that, having consulted with
Stockdale Securities, the Group's Nominated Adviser, the terms of
the Loan Agreements are considered fair and reasonable so far as
the Group's shareholders are concerned.
The Group is also today announcing its audited results for the
year ended 31 December 2016.
For further information please contact:
Parallel Media Group Plc
David Ciclitira Tel: 020 7225 2000
Stockdale Securities Limited
Richard Johnson / Edward Thomas Tel: 020 7601 6100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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