New Loan Facility

RNS Number : 3022A

Optare PLC

19 December 2014

 

Optare plc

("Optare" or the "Company")

Optare receive loan from Ashok Leyland for future product development

Optare announces that it has today entered into a £1.5 million loan facility agreement with Ashok Leyland (UAE) LLC (the "Facility Agreement").  The loan will be for an initial period of 12 months and be subject to an interest rate of LIBOR +3.5% per annum, with the proceeds to be used to support on ongoing corporate and operational working capital requirements.

Given that Ashok Leyland (UAE) LLC is a subsidiary of Ashok Leyland Limited, the Company's major shareholder, entry into the Facility Agreement is classified as a related party transaction in accordance with the AIM Rules. Accordingly, the independent directors, having consulted with the Company's nominated adviser, consider the terms of the Facility Agreement to be fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact:

Optare plc:                         Tel: [phone]
Abhijit Mukhopadhyay, Company Secretary

Cenkos Securities plc:   Tel: [phone]
Mark Connelly/Callum Davidson

 

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