REG - DCI Advisors Ltd - Shareholder Loan & Related Party Transactions

DCI AdvisorsAnnouncement

11/06/2024 09:45

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RNS Number : 9705R  DCI Advisors Limited  11 June 2024

DCI Advisors Ltd

(the "Company" or "DCI")

Further Shareholder Loan and Related Party Transactions

 

11 June 2024

 

The Board of the Company has entered into another loan agreement for
€150,000 with Mr Lars Bader to provide additional working capital to the
Company (the "Shareholder Loan"). Mr Lars Bader has previously entered into
loan agreements with the Company for €350,000 in April 2023 and another for
€100,000 in March 2024. To date, the Company has received twelve loans from
different shareholders amounting to approximately €3.3 million. As
previously announced, the first six loans made up to September 2023 have
identical terms to one another (other than their date of initiation and
currency of denomination) and are for a 12-month term bearing an interest rate
of 12 per cent. p.a., with no fees payable on disbursement or repayment.
Shareholder Loans made after September 2023 have identical terms with the
previous loans, except that there is no right of prepayment by the Company and
they will therefore last 12 months. The Company's intention is to repay all
outstanding Shareholder Loans from the proceeds of the sale of Company assets.
When combined with the Shareholder Loans announced previously, all of the
Shareholder Loans received to date are now expected to total c.€3.46 million
in aggregate.

 

In addition, the first three shareholder loans that were received have reached
their 12 month anniversaries and the lenders have each entered into an
agreement to extend the repayment dates of their respective loans by 3 months
(the "Loan Extensions"). This includes the initial April 2023 shareholder loan
received from Mr Lars Bader and the May 2023 shareholder loan from Discover
Investment Company ("DIC"), both for €350,000 respectively.

 

Related Party Transactions

 

The new Shareholder Loan agreement has been entered into with Lars Bader who
controls 10.27% of the issued share capital of the Company. Additionally, as
noted one of the Loan Extensions is for the extension to the original 12-month
term of the first loan advanced by Mr Bader and one is for the extension to
the original 12-month term of the loan from DIC which is also a Related Party.
Nicolai Huls, Managing Director of the Company, is also a Director of DIC.
Accordingly, the entering into of the new Shareholder Loan agreement and the
two Loan Extensions are all deemed to be related party transactions pursuant
to AIM Rule 13 of the AIM Rule for Companies. The Company's directors
consider, having consulted with the Company's Nominated Adviser, Cavendish
Capital Markets Limited, that the terms of the new Lars Bader Shareholder Loan
agreement and the Lars Bader Loan Extension are fair and reasonable insofar as
the shareholders are concerned. The Company's directors (excluding Nicolai
Huls) consider, having consulted with the Company's Nominated Adviser,
Cavendish Capital Markets Limited, that the terms of the DCI Loan Extension is
fair and reasonable insofar as the shareholders are concerned.

 

As previously announced, collateral in the form of security over certain
Company assets will be put in place using normal commercial terms which will
exceed the aggregate value of each of the loans. In addition, the Board has
agreed that the Company will guarantee the repayment of the latest loan and
all Shareholder Loans received to date. A further announcement will be made
once the Company has entered into the new security agreements.

 

 

 

Enquiries

 DCI Advisors Ltd

 Nicolai Huls / Nick Paris, Managing Directors                          nickparis@btinternet.com

                                                                        +44 (0) 7738 470550
 Cavendish Capital Markets (Nominated Adviser & Broker)

 James King / Jonny Franklin-Adams / Edward Whiley / Oscar Valeur-Adu
 (Corporate Finance)

                                                                      +44 (0) 20 7220 0500
 Pauline Tribe (Sales)
 FIM Capital Limited (Administrator)                                    llennon@fim.co.im (mailto:llennon@fim.co.im) / gdevlin@fim.co.im

                                                                      (mailto:gdevlin@fim.co.im)
 Lesley Lennon / Grainne Devlin (Corporate Governance)

 

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