Highway Capital PLC Financial Update (8391U)

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RNS Number : 8391U

Highway Capital PLC

02 April 2019

2 April 2019

Highway Capital Plc (the "Company")

Financial Update

The Company announces the following details from 2017, 2018, and 2019 of: two convertible loan notes, loans received by the Company, loans repaid by the Company, and further specifications on the loan to Mylux, and repayment thereof. This information has not been previously disclosed.

Failure to disclose these transactions in a timely manner constitutes a breach of the Listing Rules. The Company understands that these communications are a crucial part of their obligations to investors, and are taking steps to strengthen their communications process and to re-emphasise internal adherence to regulation. In this regard, the company is considering a number of steps including the appointment of a financial adviser to assist prevent such occurrences from happening again.

Convertible Loan Notes

On 14 July 2017, the Company issued convertible loan notes ("CLN") for the amount of GBP100,000 to unconnected investors. The CLN are repayable 5 years from the date of issue and carry an interest rate of 5% per annum. The CLN are convertible at the discretion of the loan note holder, following a 6-month period from the date of the issue of the loan note, with a conversion price of 10p.

On 17 July 2017, the Company issued CLN for the amount of GBP25,000 to unconnected investors. The CLN are repayable 5 years from the date of issue and carry an interest rate of 5% per annum. The CLN are convertible at the discretion of the loan note holder, following a 6-month period from the date of the issue of the loan note, with a conversion price of 10p.

The CLN are still outstanding.

Loans

The Company received the following loans from Directors of the Company:

As previously announced, Maciej Szytko, a director of the Company, extended loans of GBP157,000 from the period of 2013 to 2016 carrying an interest rate of 5% per annum. On 3 September 2018 and 12 February 2019, the Company received further loans of GBP8,000 and GBP10,000 respectively from Maciej Szytko on the same terms, which have not been announced. These loans have now been repaid, as well as GBP30,918.48 of interest.

Subsequently, the Company received a loan of GBP5,000 carries an interest rate of 5% per annum from Maciej Szytko on 15 March 2019, which is still outstanding.

Dariusz Zych, a director of the Company, extended a loan of GBP27,000 to the Company, as previously announced. On 18 December 2018, the Company received a further loan of GBP70,000 from Dariusz Zych. The loans from Dariusz Zych and interest are still outstanding.

The Company received the following loans from investors unconnected to the Company:

On 30 July 2018, the Company received a loan of GBP650. The loan is repayable 2 years from the date of issue and carries an interest rate of 5% per annum.

On 20 December 2018, the Company received a loan of GBP100,000. The loan is repayable 2 years from the date of issue and carries an interest rate of 5% per annum.

On 14 February 2019, the Company received a loan of GBP350,000. The loan is repayable 2 years from the date of issue and carries an interest rate of 5% per annum.

Repayment of Loans

On June 2018, an outstanding loan of GBP163,200 made to the Company by Wildman Asset Management was repaid. GBP1,800 of the loan and interest are still outstanding.

Mylux

As announced on 3 May 2016 and 27 June 2016, the Company extended loans of GBP89,000 and GBP120,000 respectively to Mylux, a Cypriot SPV, which was intended to be used to make a minority investment in Multipay, a newly formed company looking to offer comprehensive payment services in Poland. Following this, as announced on 22 September 2016, the Company was suspended by the UK Listing Authority, as the aforementioned loans were considered to be a significant change to "the strategic direction or nature of the Company's business away from its stated aim".

The Company extended further loan of GBP1,650 and GBP78,640 to Mylux on 29 July 2016 and 20 July 2017 respectively. These took place following its suspension, and were not announced.

Between December 2017 and June 2018, Mylux repaid this loan to a total amount of GBP292,239, in the following order:

On 19 December 2017, the Company received a loan repayment of GBP7,325. On 30 April 2018, the Company received a loan repayment of GBP4,000. On 15 May 2018, the Company received a loan repayment of GBP2,000. From 6 June 2018 to 14 June 2018, the Company received a loan repayment of GBP163,914. On 7 December 2018, the Company received a loan repayment of GBP30,000. On 9 January 2019, the Company received a loan repayment of GBP50,000. On 14 January 2019, the Company received a loan repayment of GBP35,000.

There is currently no outstanding amount still owed to the Company by Mylux.

For further information, please contact:

Highway Capital Plc

[e-mail]

020 3427 3382

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April 02, 2019 06:03 ET (10:03 GMT)