2nd Oct 2013 12:01
Hightex Group plc
("Hightex" or the "Company")
Interim financing
Hightex, a leading systems engineering company which designs, fabricates and installs large area, cable supported membrane roofs and facades worldwide, announces that it has raised €255,000 by way of a short term loan. This loan has been advanced to SolarNext AG ("SolarNext"), a wholly owned subsidiary of Hightex, which has in turn lent the €255,000 to Hightex GmbH, and has largely been used to satisfy certain German creditors.
Terms of the loan
The terms remain to be finalised, but the Directors anticipate that the €255,000 loan ("the Loan") will be for a six month term and be secured over 100% of the share capital of SolarNext. It is proposed that the Loan be repayable on 31 March 2014 and carry a coupon of 10% p.a. payable on redemption. It is also proposed that if the Loan is not repaid at that date, the holders will receive approximately 39.2% of the share capital of SolarNext which will be distributed pro rata to the amount of the Loan subscribed. In addition, it is intended that the providers of the Loan will have an option to acquire the remainder of SolarNext on terms that will require approval by all shareholders.
The Company continues to seek from its Brazilian joint venture, SEPA Hightex Coberturas Ltda further clarity on the financial information with regards to the three significant contracts. It is also pursuing its receivables in Brazil and elsewhere whilst it considers further funding options for the Company.
The Directors continue to work towards obtaining the financial information necessary to release the half yearly results and also ensuring its working capital position is sufficient. The Directors are hopeful that once these matters have been addressed the Company can seek readmission of its ordinary shares to AIM.
Related party transaction
All three directors of the Company and John Gunn, a significant shareholder in the Company, have subscribed for a portion of the Loan as detailed below:
Shareholder | Current shareholding as a percentage of issued share capital | Participation in the Loan |
Charles Des Forges | 1.42% | €40,000 |
Frank Molter | 4.04% | €50,000 |
Charles Sebag-Montefiore | 2.65% | €10,000 |
John Gunn and Mrs Renate Gunn | 9.17% | €70,000 |
The 181 Fund Limited* | 7.04% | €15,000 |
* John Gunn and Mrs Renate Gunn have a significant shareholding in The 181 Fund Limited.
In accordance with the AIM Rules for Companies the participation in the Loan by the three directors and John Gunn is a related party transaction. The Company's Nominated Adviser, finnCap Limited, considers that the participation by the Directors and the anticipated terms of the loan are fair and reasonable insofar as the Company's shareholders are concerned.
For further information:
Hightex Group plc | ||
Charles DesForges, Executive Chairman | Tel: +44 (0) 20 7603 1515 | |
Frank Molter, Chief Executive Officer
| www.hightexworld.com | |
finnCap | ||
Geoff Nash - corporate finance | Tel: +44 (0)20 7220 0500 | |
Simon Starr - corporate broking | www.finncap.com | |
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Related Shares:
Hightex Group