Mercantile Ports & Logistics Ltd Related Party Transaction

RNS Number : 0397U

Mercantile Ports & Logistics Ltd

27 June 2024

 

27 June 2024

 

 

Mercantile Ports & Logistics Limited

 

("MPL" or the "Company")

                                                               

Related Party Transaction

Mercantile Ports & Logistics (AIM: MPL), which is operating and continuing to develop a port and logistics facility in Navi Mumbai, Maharashtra, India, announces that it has today entered into an unsecured loan and credit facility agreement for £15 million with KJS Concrete Private Limited (a subsidiary of Hunch Ventures) to provide additional working capital headroom to the Company (the "New Shareholder Loan").

Hunch Ventures, as previously announced, entered into an unsecured loan agreement for £4.4 million on 19 August 2021 with the Company's India subsidiary, KTLPL, for the purposes of KTLPL's business operations (the "Existing Loan"). The Existing Loan, that remains fully undrawn, is today cancelled and superseded by the New Shareholder Loan.

The New Shareholder Loan for £15 million can be drawn down in one or more tranches between 1 June 2024 and 31 December 2027 and is repayable by 31 December 2027. If drawn down, interest will be payable on the New Shareholder Loan at the same rate as the Existing Loan, being a rate of 8 per cent. per annum.

 

Related Party Transactions

 

The New Shareholder Loan agreement has been entered into with Hunch Ventures. Hunch Ventures, an undertaking controlled by Karanpal Singh (a Non-Executive Director of the Company) and his wife Ms. Himangini Singh, is a Substantial Shareholder in the Company as it holds 38.4% of the Existing Ordinary Shares.

Where a company enters into a related party transaction, under the AIM Rules the independent directors of the company are required, after consulting with the company's nominated adviser, to state whether, in their opinion, the transaction is fair and reasonable in so far as its shareholders are concerned.

The New Shareholder Loan outlined above constitutes a related party transactions pursuant to Rule 13 of the AIM Rules. The Company's directors (excluding Karanpal Singh) consider, having consulted with the Company's Nominated Adviser, that the terms of the New Shareholder Loan agreement are fair and reasonable insofar as the Company's shareholders are concerned.

This announcement contains inside information.

 

 

- Ends -

 

For further information, please visit www.mercpl.com or contact:

 

MPL	c/o SEC Newgate [phone]
Cavendish Capital Markets Limited (Nomad and Broker)	Stephen Keys [phone]
SEC Newgate (Financial Communications)	Elisabeth Cowell/ Bob Huxford [phone] [e-mail]

 

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