5th Jun 2007 18:22
Forbidden Technologies PLC05 June 2007 5 June 2007 Forbidden Technologies plc £1 million Loan Facility - Correction The following announcement replaces the announcement regarding the £1 millionloan facility released today at 16.49pm under RNS number 8296X. It includes acorrection to the date after which time a rate of interest payable of 10% willstart accruing, from 30 November 2007 to 30 November 2008. There is also anadditional final paragraph. Further to the announcement by Forbidden Technologies plc (the "Company") of 22May 2007 in which it was noted that the Directors were considering a number ofpotential sources of funding including a possible director's loan, the Companyannounces that it has signed an agreement to secure unsecured loan facilitiesfrom its Chairman (Vic Steel) and CEO (Stephen Streater) of up to £1,000,000(one million pounds). In the event of a new share issue of £1,000,000 or more,the loan advanced by the Chairman of up to £100,000 would, at the option of theChairman, be convertible into shares on the same terms as the share issue. The loan is expected to provide working capital for the company for theforeseeable future, and to support the company to a break even or profitableposition, and as such the maximum facilities available for drawdown each monthare tapered over the next three years. No interest will accrue on the facilities until 30 November 2008 at which pointthe rate of interest payable will increase to 10% per annum for the twelve monthperiod to 30 November 2009 and by a further by 10% per annum until the loanfacilities are repaid in full. The facilities (or any part thereof) may berepaid at any time by the Company and will become immediately repayable ondemand upon the occurrence of standard events of default. Forbidden Technologies plc (the "Company") confirms that the IndependentDirectors (being the Board of Directors excluding Messrs Steel and Streater)consider, having consulted with its Nominated Adviser, that the terms of thetransaction outlined therein are fair and reasonable insofar as the shareholdersof the Company are concerned. Enquiries:Forbidden Technologies plc 020 8879 7245 Stephen Streater, Chief Executive Nominated Adviser - Bell Lawrie (a division of Brewin DolphinSecurities Limited) 0141 221 7733 Alan Stewart College Hill 020 7457 2020 Corinna Dorward/Adrian Duffield This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Blackbird PLC