2nd Apr 2015 07:26
LONDON (Alliance News) - Densitron Technologies PLC said Thursday that it has agreed to surrender its lease for a property in Newcastle for GBP400,000, financed from an unsecured loan from its largest shareholder Peter Gyllenhammer.
The loan has a coupon rate of 9% per year, and a repayment date up to end-March 2016.
The property had formerly been occupied by a subsidiary of the company that was sold in 2006. The company made an out of court settlement with the landlord of the property in 2013 after a protracted legal dispute, but this led to Densitron being liable for the remainder of the lease, due to expire at the end of 2022.
The total yearly cost for the property including rent, rates, insurance and ancillary costs was around GBP240,000.
"This settlement brings to the close a situation that has cost the company considerably both in terms of cost and time and has been an unwelcome distraction for the company's management over several years. Agreeing this settlement will now enable management to focus entirely on the business going forward," said Chairman Jan Holmstrom in a statement.
Shares in Densitron are trading up 13.6% at 4.40 pence Thursday morning, one of the best performers in the AIM All-Share.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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