Additional Loan Facility & Update on China
October 19 2009 - 2:00AM
UK Regulatory
TIDMATV
RNS Number : 9567A
Antonov PLC
19 October 2009
ATV.L
Antonov plc
(the "Company")
Amendment of Loan Facility Agreement
Issue of Equity
Update on China
The Company has today agreed to pay EUR600,000 as an additional facility fee in
respect of the Loan Facility Agreement, dated 18 February 2009.
Under the Loan Facility Agreement, Quivest B.V ("Quivest") agreed to provide
committed funds of up to EUR15 million to help finance the proposed joint venture
in China. It had been expected that funds would have been drawn down by the
middle of 2009. However, negotiations with the Company's partner in China,
Chongqing Landai Industry Co., Ltd ("Landai"), have taken longer than expected
and so as at today no funds have been drawn down against the Loan Facility
Agreement. The additional facility fee has been paid in recognition of the cost
to Quivest of this delay.
The additional facility will be paid in two tranches, with the first EUR300,000
being settled through the issue today of 600,000 ordinary shares of 10 pence
each ("Ordinary Shares") to Quivest. The second EUR300,000 will also be settled by
issue of Ordinary Shares within 3 months from the date of signing the amendment
to the Loan Facility Agreement.
Application for the admission to AIM of the Ordinary Shares allotted above will
be made and dealings are expected to commence at 8.00am on 22 October 2009. The
new Ordinary Shares will, on admission to AIM, rank pari passu with, and will be
identical in all respects to, the existing Ordinary Shares of the Company.
Application will also be made for admission of the Ordinary Shares to trading on
Euronext Amsterdam by the end of November 2009, following the publication of a
prospectus.
Discussions with Landai are continue to progress and whilst negotiations have
taken longer than expected, the Board is pleased with the progress to date and
remain confident that the joint venture will be established before the end of
the year.
Following this issue of shares, the issued share capital of the Company now
consists of 15,918,529 Ordinary Shares.
The payment of the additional fee is deemed to be a related party transaction
under Rule 13 of the AIM Rules. The independent directors of the Company have
considered the terms of this transaction and, having consulted with Astaire
Securities Plc, being the Company's Nominated Adviser, are satisfied that those
terms are fair and reasonable insofar as the Company's shareholders are
concerned.
Enquiries:
+--------------------------------------------------+--------------------+
| Please contact:- | |
+--------------------------------------------------+--------------------+
| Dr Jos E. Haag, Executive Chairman, Antonov plc | +44 1926 455 800 |
| | +31 651 561 767 |
+--------------------------------------------------+--------------------+
| Lindsay Mair/Antony Legge, Astaire Securities | +44 20 7448 4400 |
| Plc | |
+--------------------------------------------------+--------------------+
| Shane Dolan, Biddicks | +44 20 7448 1000 |
+--------------------------------------------------+--------------------+
| www.antonovplc.com | |
+--------------------------------------------------+--------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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