The
information contained within this announcement is deemed by
CloudCoCo to constitute inside information pursuant to Article 7 of
EU Regulation 596/2014 as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018 as
amended.
30 April 2024
CloudCoCo Group
plc
("CloudCoCo", the
"Company" or the "Group")
Board Change, Extension of Loan Notes
and Lifting of Temporary Suspension of Trading on
AIM
CloudCoCo (AIM: CLCO), a leading UK provider of
managed IT services and communications solutions to private and
public sector organisations, today announces that Mark
Halpin has stepped down from the Board and his position as Chief
Executive Officer with immediate effect.
The Company also announces it has reached
agreement with its loan note holder, MXC Guernsey Limited ("MXCG"),
to extend the redemption date of the loan notes from 21 October
2024 to
31 August 2026 (the "Loan Note
Extension"). Interest will continue to accrue on the loan
notes at the current rate of 12 per cent until redemption. All
other terms of the loan notes remain the same.
As consideration for the extension, effective
from 22 October 2024, MXCG will charge the Company a fee of
£550,000. Payment of this fee will be deferred until the redemption
of the loan notes and it will accrue interest at the same rate as
the loan notes. MXCG will also have the right to appoint a
consultant to, or an Executive Director of, the Company's Board in
addition to its current non-executive representative and will have
the right at any time to increase its loan security in the form of
a full debenture over all Group Companies. The loan notes are
currently unsecured and the amount outstanding is £5.85 million,
including accrued interest.
Accordingly therefore, Ian Smith (CEO of MXC
Capital Limited, the parent of MXCG) will join CloudCoCo, initially
as a consultant to the Board, acting as Interim CEO of the Group's
trading entities. The Board will seek to appoint a new CEO of the
Group as soon as possible.
As MXC Capital Limited is a shareholder of
10.63% of CloudCoCo, the Loan Note Extension is a related party
transaction pursuant to the AIM Rules for Companies. The
directors of CloudCoCo who are independent of the transaction,
being all the directors save for Jill Collighan, consider, having
consulted with the Company's Nominated Adviser, Allenby Capital
Limited, that the terms of the Loan Note Extension are fair and
reasonable insofar as shareholders are concerned.
Lifting of
Temporary Suspension of Trading on AIM
Following the publication this morning of the
Company's results for the year ended 30 September 2023, the
temporary suspension of the Company's securities from trading on
AIM is expected to be lifted at 07.30 a.m. today, 30 April
2024.
Simon
Duckworth, Non-Executive Chair, commented:
"We thank Mark for his service to the business
during a period of both organic and acquisitive growth
and wish him well with his future endeavours.
"We are pleased that we have been able to
secure an extension to the loan notes with MXCG. This,
together with the publication this morning of a solid set of
results for FY23, will give our staff, customers and suppliers
confidence over the immediate future of the business. We look
forward to working with Ian and utilising his vast experience in
the IT services market as we review the Company's strategy for its
next phase of development".
Contacts:
|
CloudCoCo Group
plc
Simon Duckworth (Non-Executive Chair)
Darron Giddens (CFO)
|
Via Alma
|
|
Allenby Capital
Limited - (Nominated Adviser & Broker)
Jeremy Porter/Daniel Dearden-Williams (Corporate
Finance)
Tony Quirke/Amrit Nahal (Equity
Sales)
|
Tel: +44 (0)20 3328 5656
|
|
Alma -
(Financial PR)
David Ison
Kieran Breheny
|
Tel: +44 (0)20 3405 0205
cloudcoco@almastrategic.com
|
About CloudCoCo
Supported by a team of industry
experts and harnessing a diverse ecosystem of partnerships with
blue-chip technology vendors, CloudCoCo makes it easy for private
and public sector organisations to work smarter, faster and more
securely by providing a single point of purchase for their
Connectivity, Multi-Cloud, Collaboration, Cyber Security, IT
Hardware, Licencing, Support and Professional Services.
CloudCoCo has headquarters in Leeds
and regional offices in Warrington, Sheffield and
Bournemouth.
www.cloudcoco.co.uk