Loan agreements

 

TIDMINVU 
 
RNS Number : 7328C 
Invu plc 
19 November 2009 
 

 
 
19 November 2009 
 
 
Invu plc 
 
 
Loan agreements 
 
 
Invu plc (LSE, AIM: INVU) ('the Company') announces that Tyne & Wear Holdings 
Limited ('Tyne & Wear') has agreed to provide a loan to the Company of GBP0.1 
million and Magpie Investments Limited ('Magpie') has agreed to provide a loan 
to the Company of GBP0.5 million (together 'the Loan'). 
The terms of the Loan are the same as the Tyne and Wear loan facility of GBP0.4 
million announced on 22 October 2009, except that the repayment date will be the 
earlier of the establishment of a new financing facility or 18 January 2010. The 
interest rate of 12.5% per annum for the Loan is calculated based on a margin 
over 3 month LIBOR. The Board announced on 15 October 2009 that it had agreed in 
principle to a new GBP1.5 million financing facility. This Loan is expected to 
cover the cash requirements of the Company prior to the completion of 
negotiations for the new facility. The Company will provide an update on this 
new facility as soon as possible. 
Tyne & Wear has additionally agreed to extend the repayment date of the GBP0.4 
million loan announced on 22 October to same date as that for the Loan. 
 
 
Goldman Investments, a company whose majority shareholder is Daniel Goldman the 
Chairman of the Company, provides investment advice to both Tyne & Wear and 
Magpie. Given the potential conflict of interest arising from this relationship, 
Mr. Goldman has not participated in the negotiation or approval by the directors 
of the Facility. 
 
 
Tyne & Wear is a substantial shareholder of the Company for the purposes of the 
AIM Rules for Companies ('AIM Rules') and, as such, is a related party of the 
Company. 
 
 
The entering into of the Facility with Tyne & Wear is classified as a 
transaction with a related party for the purposes of the AIM Rules. In 
accordance with the AIM Rules, the directors of the Company, with the exclusion 
of Daniel Goldman, having consulted with the Company's nominated adviser, 
Canaccord Adams, consider that the terms of the transaction are fair and 
reasonable insofar as the Company's shareholders are concerned. 
-ends- 
 
 
+---------------------------------+---------------------------------+ 
|  Invu plc                       | 020 7665 8900                   | 
+---------------------------------+---------------------------------+ 
| Daniel Goldman, Non Executive Chairman                            | 
+-------------------------------------------------------------------+ 
| Colin Gallick, CEO                                                | 
+-------------------------------------------------------------------+ 
| Ian Smith, CFO                                                    | 
|                                                                   | 
+-------------------------------------------------------------------+ 
| Canaccord Adams                 | 020 7050 6500                   | 
+---------------------------------+---------------------------------+ 
| Simon Bridges                                                     | 
|                                                                   | 
+-------------------------------------------------------------------+ 
| Financial Dynamics              | 020 7831 3113                   | 
+---------------------------------+---------------------------------+ 
| Juliet Clarke / Haya Herbert-Burns / Emma Appleton                | 
+---------------------------------+---------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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