Further to the announcement by Forbidden Technologies plc (the “Company”) of 22 May 2007 in which it was noted that the Directors were considering a number of potential sources of funding including a possible director’s loan, the Company announces that it has signed an agreement to secure unsecured loan facilities from its Chairman (Vic Steel) and CEO (Stephen Streater) of up to £1,000,000 (one million pounds). In the event of a new share issue of £1,000,000 or more, the loan advanced by the Chairman of up to £100,000 would, at the option of the Chairman, be convertible into shares on the same terms as the share issue.
The loan is expected to provide working capital for the company for the foreseeable future, and to support the company to a break even or profitable position, and as such the maximum facilities available for drawdown each month are tapered over the next three years.
No interest will accrue on the facilities until 30 November 2008 at which point the rate of interest payable will increase to 10% per annum for the twelve month period to 30 November 2009 and by a further by 10% per annum until the loan facilities are repaid in full. The facilities (or any part thereof) may be repaid at any time by the Company and will become immediately repayable on demand upon the occurrence of standard events of default.
Forbidden Technologies plc (the “Company”) confirms that the Independent Directors (being the Board of Directors excluding Messrs Steel and Streater) consider, having consulted with its Nominated Adviser, that the terms of the transaction outlined therein are fair and reasonable insofar as the shareholders of the Company are concerned.