LONDON - Mobile Tornado Group PLC (AIM: MBT), a provider of enterprise mobile resource management solutions, has secured its assets to cover all current and future debts and obligations to Holf Investments Limited. The company reported on Wednesday that it has agreed to grant Holf a fixed and floating charge over its assets to secure approximately £12.2 million in liabilities.
The liabilities consist of £5.7 million in redeemable preference shares, £3.7 million in accrued preference share coupon and interest, £2.0 million in short-term borrowings, £0.7 million in current account obligations primarily for rent and service fees, and £0.1 million drawn from a working capital facility.
This security arrangement replaces a previous debenture charge granted to InTechnology Plc in 2011, which has since transferred the liabilities to Holf. The current debenture charge with InTechnology remains formally in place but holds no practical effect as there are no outstanding liabilities to InTechnology. Mobile Tornado plans to discharge the InTechnology charge in due time.
Holf, entirely owned by former Non-Executive Director of Mobile Tornado, Peter Wilkinson, and his wife, holds a 46.93% stake in Mobile Tornado's issued share capital. Wilkinson's total direct and indirect beneficial interest in the company amounts to 55.62%.
The transaction is considered a related party transaction under Rule 13 of the AIM Rules for Companies due to Holf's relationship with Mobile Tornado. The independent directors of Mobile Tornado, excluding Luke Wilkinson, Peter Wilkinson's son, have consulted with the company's nominated adviser, Allenby Capital Limited, and deemed the terms of the security grant fair and reasonable for the shareholders.
This security agreement is a strategic financial move to manage the company's existing financial obligations. The information is based on a press release statement.
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