Loan Funding

RNS Number : 0241E

Parallel Media Group PLC

03 May 2013

 

Parallel Media Group PLC

("PMG" or the "Company")

Loan funding

PMG, the AIM quoted sports, entertainment and media agency, announces that it has agreed terms with the Company's Chairman, David Ciclitira, in respect of a £310,000 loan provided by him to the Company (the "Loan").

The Loan was required to meet various contractual obligations of PMG (specifically relating to the Company's successful K-pop concert business) where late payment would have materially prejudiced the Company's prospects. The Loan was made at short notice following the decision by the Company's bankers not to provide the funding required and with insufficient time to gauge the interest of the Company's other major shareholders in supporting the Company through an issue of equity. The Loan is unsecured and is repayable by monthly instalments over three years at an underlying interest rate of approximately 11 per cent. per annum.

In consideration of providing the Loan, the Company has agreed an initial facility fee of £38,483 (the 'Facility Fee'). The Facility Fee is payable by the Company by 30 June 2013 and may be satisfied by the issue of new ordinary shares at the Company's option prior to this date, based on the weighted average share price over the 5 business days following the publication of the 2012 report and accounts.

For as long as the Loan or part thereof is outstanding, it will be subject to a renewal fee (the "Renewal Fee") payable on 30 June 2014 and 30 June 2015. The Renewal Fee will be £38,483 payable in cash (or shares at the option of the Company calculated by reference to the above weighted average share price).

The Loan is deemed to be a related party transaction under the AIM Rules for Companies. The independent directors, being Leonard Fine and Ranjit Murugason, consider, having consulted with the Company's Nominated Adviser, that the terms of the Loan are fair and reasonable so far as the Company's shareholders are concerned.

Contacts

For further information, please contact:

Parallel Media Group plc                                                                          020 7225 2000

Leonard Fine                                                                       [e-mail]

Northland Capital Partners Limited                                                          020 7796 8800

Luke Cairns, Edward Hutton

 

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