30th Oct 2009 07:00
Catalyst Media Group Plc
("CMG" or the "Company")
Short term loan facility
CMG announces that it has today entered into an agreement with one of its directors, Mr Christopher Mills, to provide a £150,000 short term loan facility to the Company ("Loan").
The purpose of the Loan is to enable CMG, using those funds together with funds it has to hand, to accelerate the reduction in its loan with National Westminster Bank Plc ("Natwest Loan") such that the balance outstanding at 31st October 2009 is below £3.5 million. As reported in the notes to the accounts of CMG for the year ended 31st March 2009, the Natwest Loan could be extended under its existing terms, however a fee of £125,000 would be payable to do so.
The Loan is repayable not later than 29th April 2010, is unsecured and bears interest at 12 per cent. per annum. The directors of CMG are confident that the cash flow projections of CMG will enable it to meet that repayment date.
As Mr Mills is a director of the Company, provision of the Loan is classified as a related party transaction under the AIM Rules. Mr Mills has not participated in the Board's deliberations with regard to the Loan. Accordingly, the independent Directors, having consulted with Strand Hanson Limited, the Company's nominated adviser, consider the terms of the Loan to be fair and reasonable insofar as the Company's shareholders are concerned. In providing its advice, Strand Hanson Limited has taken into account the independent Directors' commercial assessments.
Enquiries:
Michael Rosenberg
Catalyst Media Group plc
Tel: 07785 727595
James Harris/Angela Peace
Strand Hanson Limited
Tel: 020 7409 3494
Related Shares:
Catalyst Media