LONDON - Catenai PLC (AIM: CTAI), a provider of digital media and technology, has secured a £100,000 loan to bolster its working capital, the company announced today. The AIM-quoted firm entered into agreements with certain shareholders and a new party, setting terms that include a 10% arrangement fee and no interest charges until November 1, 2025.
The loan is structured to provide an immediate advance of £10,000 due by January 31, 2025, with subsequent monthly drawdowns of £10,000 starting from January 2025. Repayment of the loan and fee will trigger the issuance of 33,333,334 warrants over new ordinary shares, exercisable at 0.3 pence per share for two years from the date of repayment.
Sanderson Capital Partners (WA:CPAP) Ltd, a significant shareholder holding more than 10% of Catenai's issued share capital, is participating in the loan agreement with a contribution of £25,000. Upon repayment, Sanderson Capital will receive 8,333,333 warrants. The transaction with Sanderson Capital Partners Ltd is considered a related party transaction under Rule 13 of the AIM Rules.
Independent (LON:IOG) directors of Catenai, after consultation with the company's nominated adviser, Cairn Financial Advisers LLP, have deemed the terms of the transaction with Sanderson Capital Partners Ltd fair and reasonable for the shareholders.
This loan agreement is aimed at supporting the company's immediate financial needs and is part of Catenai's broader strategy to manage its working capital. The announcement is categorized as containing inside information under the UK Market Abuse Regulation, and it is based on a press release statement. Interim Chief Executive Officer John Farthing is responsible for the arrangement of this announcement.
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