Services agreement with InTechnology

RNS Number : 7905V

Mobile Tornado Group PLC

26 July 2018

 

26 July 2018

Mobile Tornado Group plc

("Mobile Tornado", the "Company" or the "Group")

Services agreement with InTechnology

Mobile Tornado (AIM: MBT), the leading provider of instant communication mobile applications to the enterprise market, announces that, on 25 July 2018, the Company entered into a Services Agreement (the "Services Agreement") with InTechnology Plc ("InTechnology").

Under the terms of the Services Agreement, InTechnology has agreed to provide the Company with office space within Cardale House, Harrogate, at a monthly fee rental of £2,829.33. This fee being fully inclusive of all related service charges, rates, utilities and cleaning services. The Services Agreement provides that the monthly fee will be reviewed annually, can be varied by consent of both parties and any increase will be capped at the official RPI inflation rate at that time.  Any payments due under the Services Agreement will become payable by Mobile Tornado on the later of twelve months from the date of the agreement and the Company reporting a positive EBITDAE for any six-month period. The Services Agreement is for an indefinite term and can be cancelled by either party providing not less than 30 days' notice. 

As InTechnology is a substantial shareholder in the Company (as defined in the AIM Rules for Companies ("AIM Rules")), the Services Agreement constitutes a related party transaction under Rule 13 of the AIM Rules. The independent directors of the Company (excluding Mr Wilkinson), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider the terms of the Services Agreement to be fair and reasonable insofar as the Company's shareholders are concerned. 

Enquiries:

Mobile Tornado Group plc	www.mobiletornado.com
Jeremy Fenn, Chairman	[phone]
Allenby Capital Limited (Nominated Adviser & Broker)
Virginia Bull / James Reeve / Nicholas Chambers	[phone]

Walbrook PR Ltd	[e-mail]
Paul Cornelius / Sam Allen	[phone]

 

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