Working Capital Loan

RNS Number : 6743D

Coral Products PLC

02 February 2015

 

2 February 2015

CORAL PRODUCTS PLC

("Coral" or the "Group")

Working Capital Loan

The board of Coral announces that it has entered into a loan agreement with Joe Grimmond, a director of the Company, pursuant to which Mr Grimmond has loaned £200,000 to the Company ("Loan"). The Loan shall accrue interest at a rate of five per cent. per annum, payable every six months from 1 May 2015. The Loan is repayable over three years and is secured against tooling for food containers held by Interpack Limited, one of the Company's subsidiary companies.

The Loan, together with existing bank facilities, shall be used to bridge the short-term funding gap which has arisen as a result of the administration of VDC, one of Coral's major media customers, as announced on 5 January 2015. In that announcement, the board estimated that the loss arising from VDC's administration could be £500,000. The board's latest expectation is that the net accounting loss after tax will not exceed £300,000.

The loan provided by Mr Grimmond is a related party transaction as defined in the AIM Rules for Companies. The directors of Coral (with the exception of Mr Grimmond) consider, having consulted with Cairn Financial Advisers LLP, the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries

Coral Products plc Joe Grimmond, Executive Chairman	Tel: [phone]
Nominated Adviser Cairn Financial Advisers LLP Avi Robinson / Tony Rawlinson	Tel: [phone]
Broker Hume Capital Securities plc David Lawman / Guy Peters	Tel: [phone]
Capital Markets Consultants Limited Richard Pearson	Tel: [phone]

 

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