Working Capital Loan and Related Party Transaction

Catenai PLC

14 January 2025

 

14 January 2025

Catenai PLC

("Catenai", or the "Company")

Working Capital Loan and Related Party Transaction

Catenai PLC (AIM: CTAI), the AIM quoted provider of digital media and technology, announces that it has entered into loan agreements to provide the Company with £100,000 of funding ("Loan Agreements").

Working Capital Loan

In order to support its own working capital, Catenai has entered into Loan Agreements with certain existing shareholders and a new party to provide £100,000 in loans on the following terms:

●    An arrangement fee of 10% of the loan commitment ("Fee") added to the loan balance.

●    No interest charged until 1 November 2025 by when it is expected that the loan will have been repaid, if not thereafter at 0.5% per calendar day, on the outstanding balance.

●    Immediate advance of £10,000 due by 31 January 2025 with nine additional monthly drawdowns of £10,000 from January 2025.

●    Upon repayment of the Fee and loan commitment, 33,333,334 warrants over new ordinary shares exercisable at a price of 0.3 pence per share for a period of two years from the date of repayment, will be issued to the lenders. A further announcement will be made on issue of the warrants ("Warrants").

Related Party Transaction

Sanderson Capital Partners Ltd are providing £25,000 under a Loan Agreement and will receive 8,333,333 Warrants upon repayment.

The Loan Agreement which has been entered into between the Company and Sanderson Capital Partners Ltd constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules by virtue of Sanderson Capital Partners Ltd being a shareholder of more than 10% of the Company's current issued share capital (the "Transaction"). Brian Thompson and John Farthing, being independent directors of the Company, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, consider that the terms of the Transaction are fair and reasonable in so far as the Company's shareholders are concerned.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation. The person who arranged for release of this announcement on behalf of the Company was John Farthing, Interim Chief Executive Officer of the Company and the Directors of the Company are responsible for the release of this announcement.

For further information please contact:

Catenai PLC	[phone]
John Farthing, Interim Chief Executive Officer
Cairn Financial Advisers LLP (Nominated Adviser)	[phone]
Liam Murray / Ludovico Lazzaretti / James Western
Shard Capital Partners LLP (Broker)	[phone]
Damon Heath

Notes to Editors:

About Catenai PLC

Catenai is an AIM quoted provider of digital media and technology services. The Company has an experienced IT team of project managers and integrators who have deployed systems across corporate, government and educational sectors.

www.catenaiplc.com

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

END