21st Century Technology PLC Debt Financing (2596R)

TIDMC21

RNS Number : 2596R

21st Century Technology PLC

08 December 2016

8 December 2016

21st Century Technology plc

("21st Century" or "the Group")

Debt Financing

21(st) Century Technology plc (AIM: C21), the specialist provider of tailored solutions to the transport community, solving complex operational requirements both on and off vehicle, is pleased to announce that, further to the interim results announcement on 28 September 2016 when the Company stated that the Board was considering additional financing options to support the business with its working capital requirements, it has secured GBP300,000 of debt financing in the form of loan notes ("Loan Notes") details of which are set out below. Irrevocable commitments to subscribe for the Loan Notes were received on 7 December 2016 with the actual subscription for the Loan Notes expected in the next 2-3 days resulting in the immediate cash receipt of GBP225,000, the remaining GBP75,000 expected to be received by no later than 31 December 2016.

Following receipt of the irrevocable commitments the Company will also be in a position to secure access to a new GBP400,000 invoice discounting facility with MarketInvoice (the "Invoice Facility"). The Invoice Facility will be used when required on an invoice by invoice basis. The Group are under no obligation to use the Invoice Facility unless they choose to.

The Invoice Facility attracts various platform and interest charges when it is used and the Board expects the average cost per invoice to range between 15-20 per cent. APR. The Loan Notes attract interest at 10.0 per cent. and are repayable in full on 31 December 2019. The Loan Notes are secured on a charge against the Group's trade debtors, excluding those invoices from time to time discounted via the Invoice Facility.

GBP60,000 of the Loan Notes in aggregate are being provided by three of the Group's directors; Russ Singleton, Mark Elliott and James Cumming (the "Lending Directors"). The Lending Directors are related parties of the Company pursuant to the AIM Rules for Companies.

The independent director of 21(st) Century, being the Company's finance director Glenn Robinson, considers, having consulted with the Company's nominated adviser finnCap Limited, that the terms of the Loan Notes and the related security documentation between the Company and the Lending Directors is fair and reasonable insofar as the Company's shareholders are concerned.

Russ Singleton, Chief Executive Officer, said: "Over the last few weeks, progress at 21(st) Century has been good with the previously announced GBP2m in new contracts and the two-year contract extension with Arriva UK Bus; complimenting the five-year agreement secured in August with First Bus UK. The financing facilities announced today provide additional working capital as we continue to invest in our customers and solutions, while negotiating on a number bids and tenders".

A digital copy of this announcement will be available on the Group's website: www.21stplc.com

Enquiries:

 
   21st Century Technology       Russ Singleton           Tel: [phone] 
    plc                                                    7990 
   finnCap Limited 
   Nominated Adviser             Julian Blunt/Scott       Tel: [phone] 
                                  Mathieson                0500 
   Corporate Broking             Malar Velaigam 
   Media enquiries 
   Communications                Ariane Comstive /        Tel: 07785 
    Portfolio                     Helen Carpanini          922 354/ 
                                                           0207 536 2007 
 

Notes to editors:

'Connected Systems for Connected Journeys'

21st Century Technology is the specialist provider of tailored solutions to the transport community, solving complex operational requirements both on and off the vehicle. Comprised of a Fleet Systems division and a Passenger Systems division, 21st Century Technology provides integrated solutions both on and off the vehicle to deliver 'connected systems for connected journeys'.

Fleet Systems: include CCTV video surveillance; to improve passenger & driver safety, vehicle & driver performance monitoring, real-time on-board IT subsystems management and automatic passenger counting.

Passenger Systems: include the design & manufacture of all the necessary hardware and software for electronic passenger information systems, off-vehicle smart ticketing and way-finding.

With over 20 years' experience in the transport industry, 21st Century Technology specialises in providing innovative, cost-effective technology lead solutions to improve the passenger experience and provide operational benefits to fleet and network operators.

Further information on the company is available on www.21stplc.com or search for 21st Century Technology on LinkedIn and @21stCenturyLtd on Twitter.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IODUBUURNNAURUA

(END) Dow Jones Newswires

December 08, 2016 02:00 ET (07:00 GMT)