27 June 2024
Mercantile Ports & Logistics Limited
("MPL" or the "Company")
Related
Party Transaction
Mercantile Ports
& Logistics (AIM: MPL), which is operating and continuing to
develop a port and logistics facility in Navi Mumbai, Maharashtra,
India, announces that it has today entered into an unsecured loan
and credit facility agreement for £15 million with
KJS Concrete Private Limited (a subsidiary of
Hunch Ventures) to provide additional
working capital headroom to the Company (the "New Shareholder Loan").
Hunch Ventures, as previously
announced, entered into an unsecured loan agreement for £4.4
million on 19 August 2021 with the Company's India subsidiary,
KTLPL, for the purposes of KTLPL's business operations (the
"Existing Loan"). The
Existing Loan, that remains fully undrawn, is today cancelled and
superseded by the New Shareholder Loan.
The New Shareholder Loan for £15
million can be drawn down in one or more tranches between 1 June
2024 and 31 December 2027 and is repayable by 31 December 2027. If
drawn down, interest will be payable on the New Shareholder Loan at
the same rate as the Existing Loan, being a rate of 8 per cent. per
annum.
Related Party
Transactions
The New Shareholder Loan agreement has
been entered into with Hunch
Ventures. Hunch Ventures, an undertaking
controlled by Karanpal Singh (a Non-Executive Director of the
Company) and his wife Ms. Himangini Singh, is a Substantial
Shareholder in the Company as it holds 38.4% of the Existing
Ordinary Shares.
Where a company enters into a
related party transaction, under the AIM Rules the independent
directors of the company are required, after consulting with the
company's nominated adviser, to state whether, in their opinion,
the transaction is fair and reasonable in so far as its
shareholders are concerned.
The New Shareholder Loan outlined
above constitutes a related party transactions pursuant to Rule 13
of the AIM Rules. The Company's directors
(excluding Karanpal Singh) consider, having consulted with the
Company's Nominated Adviser, that the terms of the New Shareholder
Loan agreement are fair and reasonable insofar as the Company's
shareholders are concerned.
This announcement contains inside
information.
- Ends -
For
further information, please visit www.mercpl.com or
contact:
|
MPL
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c/o SEC Newgate
+44 (0) 20 3757 6880
|
|
Cavendish Capital Markets Limited
(Nomad and Broker)
|
Stephen Keys
+44 (0) 207 220 0500
|
|
SEC
Newgate
(Financial
Communications)
|
Elisabeth Cowell/ Bob
Huxford
+44 (0) 20 3757 6880
mpl@newgatecomms.com
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