Nature Group PLC Trading Update (6637M)
May 01 2018 - 2:00AM
UK Regulatory
TIDMNGR
RNS Number : 6637M
Nature Group PLC
01 May 2018
This announcement contains inside information
NATURE GROUP PLC
("Nature Group" or the "Company")
Shareholder Loan
Nature Group PLC (AIM:NGR), the provider of port reception
facilities and waste treatment solutions for the oil, marine and
process industries, announces that it has entered into a Loan
Agreement (the "Loan Agreement") with Fairweather & Sons
Limited ("Fairweather & Sons"), a company controlled by the
Fairweather family, an existing shareholder in the Company,
pursuant to which Fairweather & Sons has made available a loan
of GBP400,000 to the Company (the "Loan"). Under the terms of the
Loan Agreement, interest is payable by the Company in respect of
the Loan at an interest rate of 5% per annum, to be paid quarterly
in arrears.
The Loan is repayable by the Company on or before 31 January
2019 or, if sooner, immediately upon release to it of proceeds
currently held in escrow pursuant to the sale of the Company's
Gibraltar operations, as announced on 16 January 2017. The Loan may
also be repaid, in whole or in part, at the Company's
discretion.
In connection with the Loan, the Company and Fairweather &
Sons have entered into a Warrant Instrument (the "Warrant
Instrument") pursuant to which Fairweather & Sons may subscribe
for up to a maximum of 12,500,000 ordinary shares of 2 pence each
in the Company (the "Ordinary Shares") at an exercise price of 3.2
pence per Ordinary Share. In the event that Fairweather & Sons
exercises its rights under the Warrant Instrument, the balance
outstanding under the Loan Agreement shall be reduced
accordingly.
Trading of the Company's shares on AIM was suspended at the
Company's request on 27 March 2018, following notification of a one
off, immediate tax liability and pending further clarification of
its financial position. The Loan provides the Company with
sufficient short term liquidity to allow it to satisfy a number of
near-term payment obligations, including the tax liability. In
addition, the Board has secured an extension to the verbal waiver
it announced on 7 March 2018 deferring the repayment of lease and
debt financing facilities totalling GBP1 million provided to Nature
Oil & Gas Holding until the end of June 2018.
However, the Company's financial position remains extremely
difficult. The Board remains in negotiations with a number of
parties about its future financing, structure and strategic
direction. Such negotiations remain vital in securing the Company's
future. Accordingly, trading in the Company's shares on AIM remains
suspended pending clarification over the financial position of the
Company. Further announcements will be issued in due course.
Berend van Straten, Chairman of Nature Group, commented:
"The Board of Nature Group is grateful to the Fairweather family
for their considerable financial support for the Company at this
time. The proceeds of the Loan will provide the Company with the
ability to repay their immediate liabilities, whilst the Board acts
to secure the long-term future of the Company. We would like to
thank the many shareholders that have contacted the Board offering
their continued support. The ongoing assistance provided by DNB
bank is greatly appreciated whilst these issues are resolved by the
Board."
For further information:
Nature Group PLC
Andreas Drenthen, CEO Tel: + 31 653261484
Berend van Straten, Chairman Tel: + 31 626805605
Cenkos Securities plc
Neil McDonald Tel: +44 (0)131 220 9771 / +44 (0)207 397 1953
Beth McKiernan Tel: +44 (0)131 220 9778 / +44 (0)207 397 1950
Pete Lynch Tel: +44 (0)131 220 9772
Nature Group is traded on the AIM market, (ticker: NGR).
www.ngrp.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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