Loan Agreements Update

RNS Number : 2885B

Dillistone Group PLC

06 June 2019

 

Dillistone Group Plc

("Dillistone" or the "Group")

Loan Agreements Update

The Board of Dillistone Group Plc, the AIM quoted supplier of software for the international recruitment industry, is pleased to announce an extension to its loan agreements.

The Group entered into a £500,000 2 year bank loan facility (the "bank loan") with HSBC on 5 June 2019 to support investment in its restructuring and to provide additional working capital.  

The bank loan, which is repayable over its term, with early repayment rights without penalty, bears interest at 3.25% over the Bank of England base rate.

The bank loan ranks ahead of the £400,000 8.15% convertible loan notes ("loan notes") issued on 28 September 2017 for capital repayment.  Accordingly, the loan note holders, comprising various directors and other persons discharging managerial responsibilities as announced on 28 September 2017, have signed an agreement to postpone repayment of the loan notes until the bank Loan has been repaid. Quarterly interest payments will however continue to be made on the loan notes until repayment.

The amendment to the loan note terms constitutes a related party transaction under AIM Rule 13. Alistair Milne, who is not interested in the loan notes and therefore represents an independent Director for this purpose, having consulted with WH Ireland, the Company's nominated advisor, considers that the amendments to the Loan Notes are fair and reasonable in so far as the Dillistone shareholders are concerned.

Commenting on the bank loan, Jason Starr, Chief Executive at Dillistone, said:

"The merging of our London team into the newly enlarged Basingstoke office will allow us to deliver a better service to our clients and a better return to our investors.  Our plans have been well received and the process has started very positively.  The new loan ensures that we are well positioned to fund the restructuring without having to call on our shareholders.  We are excited by the potential for the business."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

Dillistone Group Plc
Mike Love	Chairman			Via Walbrook PR
Jason Starr	Chief Executive
Julie Pomeroy	Finance Director
WH Ireland Limited (Nominated adviser)
Chris Fielding	Managing Director - Corporate Finance & COO CIB			020 7220 1650
Walbrook PR
Tom Cooper / Paul Vann				020 7933 8780
				0797 122 1972
				[e-mail]

Notes to Editors:

Dillistone Group Plc (www.dillistonegroup.com) is a leader in the supply and support of software and services to the recruitment industry. It has five brands operating through three divisions: Dillistone Systems, which targets the executive search industry (www.dillistone.com); Voyager Software, which targets other recruitment markets (www.voyagersoftware.com); and GatedTalent, the next generation executive recruitment platform (www.GatedTalent.com).

Dillistone has made three acquisitions: Voyager Software in September 2011, FCP Internet in July 2013 and ISV Software in September 2014.  The Group operates under the FileFinder, Infinity, Evolve, ISV and GatedTalent brands.

Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006.  The Group employs over 100 people globally with offices in London, Basingstoke, Southampton, Frankfurt, New Jersey and Sydney.

 

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