JAYWING PLC

Related Party Transaction • Oct 2, 2019

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 4270O

Jaywing PLC

02 October 2019

Information contained within this announcement was deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

2 October 2019

Jaywing plc

("Jaywing" or the "Company")

Further re. trading update & related party transactions

Further to its announcement on 30 August 2019, the Company is pleased to announce that it has been notified that entities associated with two of its major shareholders ( the "Major Shareholders") have acquired the Company's existing secured loan facility of £5.2m owed to Barclays Bank plc ("Jaywing Facility").  The Major Shareholders have immediately provided the Company with additional secured facilities by increasing the Jaywing Facility by £3m to £8.2m, which has enabled the Company to repay its outstanding overdraft and provide it with additional working capital.

The additional finance ensures that the Company is in a much stronger financial position to not only meet its short-term financing requirements but also to continue realigning the business and its product offerings to client demand in a market place which has and continues to evolve rapidly.

The Major Shareholders have indicated their ongoing support for the business, which may include the provision of further debt and/or equity by them. 

Related party transactions

The additional capital being provided by entities associated with the Major Shareholders is being done so on the same terms as the term loan previously provided to Jaywing by Barclays.  As each of the Major Shareholders, being Lord Ashcroft KCMG PC and Lombard Odier Asset Management (Europe) Limited*, are considered related parties because of their respective shareholdings in the Company, the provision of this capital by entities associated with each of them are deemed to comprise related party transactions for the purposes of Rule 13 of the AIM Rules for Companies. The Directors consider, having consulted with the Company's nominated adviser, Cenkos Securities plc, that the terms of the transactions are fair and reasonable insofar as the Company's shareholders are concerned.

*acting in its capacity as discretionary investment manager or sub-adviser for and on behalf of certain funds and accounts managed by it and/or as agent of Lombard Odier Asset Management (USA) Corp (LOAM USA) acting in its capacity as discretionary investment manager for and on behalf of certain funds and accounts managed by it.

Jaywing plc (www.jaywingplc.com)

Michael Sprot (Company Secretary)

Tel: 0114 281 1200

Cenkos Securities plc

Nicholas Wells/Callum Davidson (Nominated Adviser)

Tel: 0207 397 8900

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

MSCLFFLIILLLIIA