30th Dec 2019 09:35
(Alliance News) - IDE Group Holdings PLC on Monday said it has raised GBP1.5 million through the issue of secured loan notes to its three largest shareholders, including London-listed MXC Capital Ltd.
Following this GBP1.2 million subscription, MXC holds GBP9.2 million of the GBP11.5 million IDE loan notes and 43% of the issued share capital of IDE.
Also among investors were Blake Holdings Ltd, contributing GBP150,000. Funds managed by Kestrel Partners LLP added the remaining GBP120,000.
MXC explained that the IDE loan notes have a term of six years and an annual coupon of 12%, which is rolled up, compounded annually and payable at the end of the term.
The proceeds of the issue of the loan notes will be used to fully repay all outstanding finance leases, IDE said, and to provide additional working capital.
On the operational front, IDE said it has continued to renew customer contracts and in progressing new relationships. Since the end of the first half in September, the company said it has secured one two-year deal, worth over GBP1 million per annum, and a further two two-year minimum deals worth at least GBP1 million in total.
IDE said it has started work on project providing on-site technical support. This is worth over GBP1 million per annum. It also recently added a new customer with whom it has a good pipeline of new business.
IDE shares were trading 5.9% higher in London on Monday morning at 4.50 pence each, while MXC shares were up 2.2% at 82.80p each.
By Evelina Grecenko; [email protected]
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