KRM22 PLC Debt Facility Secured (3227X)

TIDMKRM

RNS Number : 3227X

KRM22 PLC

29 April 2019

KRM22 plc

("KRM22" or the "Company")

Debt Facility Secured

KRM22 plc, (AIM: KRM) the technology and software investment company that focuses on risk management for capital markets, is pleased to announce that its subsidiary KRM22 Central Limited has entered into a new five-year debt facility (the "Facility") with Harbert European Growth Capital Fund II ("Harbert" or "HEGCF II").

The Facility will support future business growth and allow the Company to pursue its pipeline of investment targets.

The Facility, summary details of which were outlined in the Company's fundraising announcement of 3 April 2019, is for up to EUROS 11.55 million (the euro equivalent of GBP10.0 million) of which an initial GBP1m will be drawn down immediately. The availability of additional drawdowns is based on the value and growth of the KRM22 group's ("Group") annualised recurring revenues ("ARR") and drawdowns can be made until 31 December 2020.

The Company has a strong pipeline of investment opportunities and continues to actively pursue near-term acquisition and partnership opportunities. As the Group grows its ARR organically and via acquisition, further drawdowns of the Facility are expected to be made.

The Facility is secured on certain Group assets and does not include covenants based on the Group's financial performance.

The interest rate payable on debt drawn down is 11 per cent. per annum on the initial GBP1 million drawdown and the higher of 11% or 11% plus one year EURO Libor for additional drawdowns. In conjunction with the Facility, the Company has constituted warrants over a number of Ordinary Shares in the Company to Harbert with a total value equal to a maximum of GBP1.0 million at an exercise price as set out below. Upon the initial drawdown, warrants over 495,049 new Ordinary Shares will be issued with an exercise price of GBP1.01 per Ordinary Share. Additional warrants will be issued in an amount equal to 5.6% of each subsequent drawdown of the Facility (up to a maximum value of GBP500,000 in aggregate) calculated by reference to an exercise price of the lower of a 10% discount to the prevailing market price or GBP1.01 per new Ordinary Share.

Keith Todd, CEO and Executive Chairman at KRM22 said: "We are delighted to partner with Harbert who look to financially support the strong acquisition pipeline and growth opportunities we have. The Facility will help us deliver our investing policy as outlined at IPO and will underpin the growth of the Global Risk Platform."

Fahad Khan, Vice President at Harbert said: "KRM22 are at an exciting stage of innovating in the risk management software industry in Europe, USA and Asia. We are delighted to support the company's long term growth ambitions, and contribute our international network and sizeable financial resources to help management capitalise on the market opportunity"

Lyall Davenport, Associate at Harbert added: "We have been impressed by KRM22's ability to bring together a number of interesting businesses in the risk management space in what has been a relatively short period of time. We are excited to work with the team in helping build the Global Risk Platform, which we believe will be the market leader in this space".

For further information please contact:

KRM22 plc

[e-mail]

Keith Todd CBE, Executive Chairman and CEO

Karen Bach, COO

finnCap Ltd (Nominated Adviser and Sole Broker) [phone]

Carl Holmes / Kate Bannatyne

About KRM22 plc

KRM22 is a closed-ended investment company which listed on AIM on 30 April 2018. The Company has been established with the objective of creating value for its investors through the investment in, and subsequent growth and development of, target companies in the technology and software sector, with a focus on risk management in capital markets.

Through its investments and the Global Risk Platform, KRM22 helps capital market companies reduce the cost and complexity of risk management. The Global Risk Platform provides applications to help address firms' regulatory, market, technology and operations risk challenges and to manage their entire enterprise risk profile.

Capital markets companies' partner with KRM22 to optimize risk management systems and processes, improving profitability and expanding opportunities to increase portfolio returns by leveraging risk as alpha.

KRM22 PLC is listed on AIM and the Group is headquartered in London, with offices in several of the world's major financial centres.

See more about KRM22 at KRM22.com.

About Harbert European Growth Capital

Harbert European Growth Capital is Europe's leading investor in high growth technology-based companies looking to scale with less dilutive forms of investment capital.

The HEGCF II fund partners with ambitious management teams and shareholders of private and publicly listed companies to help build leading companies of the future. We provide flexible capital to support business plans ranging from organic growth, M&A and pre-IPO financing to various types of recapitalisations.

HEGCF II is backed by Harbert Management Corporation, an alternative investment firm with approximately $6.4 billion in Regulatory Assets Under Management as of February 28, 2019, along with a number of well-known institutional sponsors.

See more about Harbert at https://www.harbert.net/investment-strategies/private-capital/european-growth-capital/

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April 29, 2019 02:01 ET (06:01 GMT)