KRM22 PLC Debt Facility Secured (3227X)
April 29 2019 - 2:01AM
UK Regulatory
TIDMKRM
RNS Number : 3227X
KRM22 PLC
29 April 2019
KRM22 plc
("KRM22" or the "Company")
Debt Facility Secured
KRM22 plc, (AIM: KRM) the technology and software investment
company that focuses on risk management for capital markets, is
pleased to announce that its subsidiary KRM22 Central Limited has
entered into a new five-year debt facility (the "Facility") with
Harbert European Growth Capital Fund II ("Harbert" or "HEGCF
II").
The Facility will support future business growth and allow the
Company to pursue its pipeline of investment targets.
The Facility, summary details of which were outlined in the
Company's fundraising announcement of 3 April 2019, is for up to
EUROS 11.55 million (the euro equivalent of GBP10.0 million) of
which an initial GBP1m will be drawn down immediately. The
availability of additional drawdowns is based on the value and
growth of the KRM22 group's ("Group") annualised recurring revenues
("ARR") and drawdowns can be made until 31 December 2020.
The Company has a strong pipeline of investment opportunities
and continues to actively pursue near-term acquisition and
partnership opportunities. As the Group grows its ARR organically
and via acquisition, further drawdowns of the Facility are expected
to be made.
The Facility is secured on certain Group assets and does not
include covenants based on the Group's financial performance.
The interest rate payable on debt drawn down is 11 per cent. per
annum on the initial GBP1 million drawdown and the higher of 11% or
11% plus one year EURO Libor for additional drawdowns. In
conjunction with the Facility, the Company has constituted warrants
over a number of Ordinary Shares in the Company to Harbert with a
total value equal to a maximum of GBP1.0 million at an exercise
price as set out below. Upon the initial drawdown, warrants over
495,049 new Ordinary Shares will be issued with an exercise price
of GBP1.01 per Ordinary Share. Additional warrants will be issued
in an amount equal to 5.6% of each subsequent drawdown of the
Facility (up to a maximum value of GBP500,000 in aggregate)
calculated by reference to an exercise price of the lower of a 10%
discount to the prevailing market price or GBP1.01 per new Ordinary
Share.
Keith Todd, CEO and Executive Chairman at KRM22 said: "We are
delighted to partner with Harbert who look to financially support
the strong acquisition pipeline and growth opportunities we have.
The Facility will help us deliver our investing policy as outlined
at IPO and will underpin the growth of the Global Risk
Platform."
Fahad Khan, Vice President at Harbert said: "KRM22 are at an
exciting stage of innovating in the risk management software
industry in Europe, USA and Asia. We are delighted to support the
company's long term growth ambitions, and contribute our
international network and sizeable financial resources to help
management capitalise on the market opportunity"
Lyall Davenport, Associate at Harbert added: "We have been
impressed by KRM22's ability to bring together a number of
interesting businesses in the risk management space in what has
been a relatively short period of time. We are excited to work with
the team in helping build the Global Risk Platform, which we
believe will be the market leader in this space".
For further information please contact:
KRM22 plc
InvestorRelations@krm22.com
Keith Todd CBE, Executive Chairman and CEO
Karen Bach, COO
finnCap Ltd (Nominated Adviser and Sole Broker) +44 (0)20 7220
0500
Carl Holmes / Kate Bannatyne
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' regulatory, market, technology and operations
risk challenges and to manage their entire enterprise risk
profile.
Capital markets companies' partner with KRM22 to optimize 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.
About Harbert European Growth Capital
Harbert European Growth Capital is Europe's leading investor in
high growth technology-based companies looking to scale with less
dilutive forms of investment capital.
The HEGCF II fund partners with ambitious management teams and
shareholders of private and publicly listed companies to help build
leading companies of the future. We provide flexible capital to
support business plans ranging from organic growth, M&A and
pre-IPO financing to various types of recapitalisations.
HEGCF II is backed by Harbert Management Corporation, an
alternative investment firm with approximately $6.4 billion in
Regulatory Assets Under Management as of February 28, 2019, along
with a number of well-known institutional sponsors.
See more about Harbert at
https://www.harbert.net/investment-strategies/private-capital/european-growth-capital/
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END
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