Caledonian Trust PLC Further loan from Leafrealm Limited (1812K)
April 06 2018 - 12:18PM
UK Regulatory
TIDMCNN
RNS Number : 1812K
Caledonian Trust PLC
06 April 2018
Information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the
publication of this announcement, this information is now
considered to be in the public domain.
6 April 2018
Caledonian Trust plc
("Caledonian Trust" or the "Company")
Further loan from Leafrealm Limited
On 29 March 2018 the Company announced in its interim results
that it was in discussions with Leafrealm Limited ("Leafrealm") in
respect of additional loan funding of up to a further GBP100,000 on
the same terms and conditions as previous loan arrangements with
Leafrealm. Leafrealm is a company controlled by Douglas Lowe,
Caledonian Trust's Chairman, Chief Executive and major
shareholder.
The Company announces that on 6 April 2018 Leafrealm entered
into an agreement with the Company whereby Leafrealm has agreed to
provide an additional loan of GBP100,000 to the Company (the
"Further Leafrealm Loan") on the same terms and conditions as the
existing loan facility in place between the parties, details of
which were announced on 1 July 2016.
The Further Leafrealm Loan will provide the Company with
additional working capital and will provide funding for certain of
Caledonian Trust's short-term development activities, pending the
sale of two houses in Brunstane which are currently under offer as
previously announced by the Company.
The Company has not currently drawn down any amounts under the
Further Leafrealm Loan however the likelihood is that the Company
will make an initial draw down under the Further Leafrealm Loan by
30 April 2018.
The Further Leafrealm Loan was agreed on the following key
terms:
- The Further Leafrealm Loan carries an annual interest rate of
3% above the base rate of the Bank of Scotland from time to time
(currently 0.5%). Interest shall be paid in quarterly
instalments.
- Leafrealm has agreed to waive the margin element of the
interest until further notice, resulting in the effective annual
interest rate on the Further Leafrealm Loan being the base rate of
the Bank of Scotland from time to time. Leafrealm will be entitled
to re-instate the margin at any time;
- The Further Leafrealm Loan will not be convertible into new ordinary shares in the Company;
- The Further Leafrealm Loan can be repaid by the Company at any
time and is repayable on demand by Leafrealm giving 12 months and 1
day's written notice requiring repayment;
- The Further Leafrealm Loan has no specific loan maturity date; and
- The Further Leafrealm Loan is unsecured.
The Further Leafrealm Loan is separate to the existing
GBP360,000 loan facility (the "Brunstane Loan Facility"), also from
Leafrealm, put in place to provide funding for the construction of
two new semi-detached houses at Brunstane Road South, Edinburgh,
Scotland, details of which were previously announced on 16
September 2016 and 17 February 2017. As at the date of this
announcement, the Brunstane Loan Facility has been fully drawn
down.
The aggregate amount that has been advanced by Leafrealm to the
Company across various loan arrangements totals GBP4,290,000 as at
the date of this announcement.
Enquiries:
Caledonian Trust plc
Douglas Lowe, Chairman and Chief Executive Officer Tel: 0131 220 0416
Mike Baynham, Finance Director Tel: 0131 220 0416
Allenby Capital Limited
(Nominated Adviser and Broker)
Nick Athanas Tel: 0203 328 5656
Alex Brearley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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