Plutus PowerGen PLC Loan agreement and related party transaction (5064A)

TIDMPPG

RNS Number : 5064A

Plutus PowerGen PLC

22 January 2020

The 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"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Plutus PowerGen Plc / Ticker: PPG / Index: AIM

22 January 2020

PLUTUS POWERGEN PLC

("Plutus", the "Group" or the "Company")

Loan agreement and related party transaction

The Company announces that, on 21 January 2020, it entered into an agreement with Charles Tatnall (Executive Chairman) and James Longley (Interim Chief Executive Officer and Chief Financial Officer) for an unsecured loan facility (the "Loan") of up to GBP150,000 (the "Loan Agreement").

As previously announced the Company's working capital position is highly constrained. The Loan will be used to meet the Company's short-term working capital needs. Following entering into the Loan Agreement the Company expects to be able to meet its liabilities as they fall due until mid-May 2020. As announced on 31 October 2019 the Company has implemented a cost control strategy including board members not drawing salaries and the Board remains confident that the Company would be able to raise further funds in addition to the Loan to enable the Company's debts to be paid as they fall due, should the need arise.

The Loan will be provided in equal amounts of GBP75,000 from each of the lenders (being Charles Tatnall and James Longley) and will be drawn down by the Company in four tranches of GBP18,750 from each lender. The first tranche totalling GBP37,500 is expected to be drawn down in full by the Company by 31 January 2020 with the subsequent three loan instalments, each totalling GBP37,500, expected to be drawn down in full by the Company by 29 February 2020, 31 March 2020 and 30 April 2020 respectively.

The Loan carries interest on the principal amount outstanding from time to time at the rate of 10 per cent. per annum. The accrued interest shall be rolled up and repaid in cash at the time of the repayment of the outstanding principal under the Loan Agreement.

The arrangement can be terminated at any time by either the Company or the lenders. The outstanding principal and accrued interest on the Loan will be repayable on demand with a 21 day notice of repayment. Such notice of repayment can be requested by the lenders at any time from the date of the Loan Agreement including prior to all the Loan instalments having been made by the lenders under the Loan Agreement. Furthermore, the Loan is repayable within 21 days upon a change of control of the existing board of the Company (being Charles Tatnall, James Longley and Tim Cottier) unless such repayment obligation is waived by the lenders.

In the event that the lenders sought repayment of the amounts outstanding on the Loan, and in the absence of the Company having raised capital from elsewhere and/or generated cash from its existing operations, the Company would be required to raise further funds from other sources to address the Company's working capital position. There can be no guarantee that, should the need arise, the Company will be able to raise further funding to address any potential future working capital shortfall.

Charles Tatnall and James Longley are directors of and substantial shareholders in the Company. Therefore, the entering into of the Loan Agreement constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. Tim Cottier, Non-Executive Director of the Company and the independent director for the purposes of the transaction, considers, having consulted with Allenby Capital Limited, the Company's nominated adviser, that the terms of the Loan Agreement are fair and reasonable insofar as the Company's shareholders are concerned.

**ENDS**

For further information, please visit www.plutuspowergen.com, or contact:

 
                                               +44 (0) 20 8720 
 Plutus PowerGen Plc                            6562 
 Charles Tatnall, Executive Chairman 
 
 Allenby Capital Limited (Nominated Adviser    +44 (0)20 3328 
  and Joint Broker)                             5656 
 Nick Athanas 
  James Hornigold 
 
 Turner Pope Investments (TPI) Limited         +44 (0)20 3621 
  (Joint Broker)                                4120 
 Andy Thacker 
 
 St Brides Partners Limited (Financial         +44 (0)20 7236 
  PR)                                           1177 
 Isabel de Salis

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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January 22, 2020 02:00 ET (07:00 GMT)

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