Haydale Announces New Finance Facility with Development Bank of Wales
Haydale (AIM:HAYD) announced that it has secured GBP 1 million pounds of new working capital for the Group through a combination of GBP 750,000 16-month loan facility and the issue of GBP 250, 0000 of new equity. As quoted in the press release: Development Bank of Wales (“DBW”) The Company is to enter into a … Continued
Haydale (AIM:HAYD) announced that it has secured GBP 1 million pounds of new working capital for the Group through a combination of GBP 750,000 16-month loan facility and the issue of GBP 250, 0000 of new equity.
As quoted in the press release:
Development Bank of Wales (“DBW”)
The Company is to enter into a new secured working capital loan from the DBW of £750,000 which is to be repaid monthly on or before April 2020 and carries an interest rate of 11 per cent. p.a. (“Loan”). The Loan is expected to be drawn down in January and will be used by Group for general working capital purposes. The Loan contains customary borrowing terms and conditions.“We are delighted to have entered into this facility with the Development Bank of Wales who undertook extensive due diligence on the Group before agreeing to provide us with their support,” David Banks, executive chairman at Haydale. “I’m also extremely pleased to welcome our new equity investor to the Company at this time to provide additional financial resource as we enter 2019.”
Issue of Equity
The Company has raised £250,000 through the issue of 1,250,000 new ordinary shares of 0.2p in the Company (“Ordinary Shares”) at a price of 20 pence each via a direct subscription with the Company, which represents a discount of approximately 21.6 per cent. to the closing mid-price per Ordinary Share on 20 December 2018. The Ordinary Shares are to be issued pursuant to the Company’s existing disapplication authorities granted at the Company’s 2017 AGM. The new Ordinary Shares represent approximately 4.6 per cent of the Company’s existing ordinary share capital. Following the issue of the Ordinary Shares, the Company will have 28,578,773 Ordinary Shares in issue.Application will be made for the Ordinary Shares to be admitted to trading on AIM and trading in the Ordinary Shares is expected to commence on 31 December 2018.
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