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On 3 May 2022, CEPS PLC announced an extension to the repayment date of its existing £2,950,000 loan from Chelverton Asset Management Limited (CAM). The new repayment date is on a rolling eighteen-month basis from 29 April 2022, replacing the prior 31 March 2023 date, with the loan maintaining a 5% interest rate. CEPS director and 14.06% shareholder Mr David Horner also provided a guarantee for the loan, which independent directors considered fair and reasonable as a related party transaction.
| Date | 3 May 2022 |
| Time | 07:00:13 |
| Category | Miscellaneous |
| ID | 9756J |
3 May 2022
CEPS PLC
("CEPS" or the "Company")
Extension of existing related party loan
The repayment date of the loan from Chelverton Asset Management Limited (the "CAM Loan") to CEPS which stands at £2,950,000 (which was originally announced on 2 June 2020 with subsequent extensions to its repayment date) has been changed from 31March 2023 to being on a rolling eighteen-month basis with effect from 29 April 2022. All other terms of the CAM Loan remain the same including that it carries an interest rate of 5 per cent. accruing daily and payable in arrears on 31 March, 30 June, 30 September and 31 December.
CEPS' obligations in respect of the CAM Loan have been guaranteed by Mr David Horner. As David Horner is a director of the Company and, therefore, deemed to be a related party pursuant to the AIM Rules for Companies, is a 14.06% shareholder and, together with his family, owns 55.25% of CAM Holdings Limited, which owns 100% of Chelverton Asset Management Limited (which is, therefore, itself a related party), both the extension of the CAM Loan, and the provision of the guarantee, are considered to be related party transactions pursuant to AIM Rule 13. The directors of the Company who are considered independent for the purposes of the CAM Loan and the guarantee of the CAM Loan by David Horner, being Geoff Martin, David Johnson and Vivien Langford, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, consider the CAM Loan and the guarantee of the CAM Loan by David Horner to be fair and reasonable insofar as the Company's shareholders are concerned.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).
The directors of the Company accept responsibility for the content of this announcement.
Enquiries
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CEPS PLC Vivien Langford, Group Finance Director |
+44 1225 483030
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Cairn Financial Advisers LLP James Caithie / Sandy Jamieson / Ludovico Lazzaretti |
+44 20 7213 0880 |
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.