Densitron Technologies PLC Lease settlement & issue of loan note (2348J)
April 02 2015 - 1:00AM
UK Regulatory
TIDMDSN
RNS Number : 2348J
Densitron Technologies PLC
02 April 2015
Densitron Technologies plc
Lease settlement & issue of loan note
The Directors of Densitron Technologies plc are pleased to
announce that they have reached an agreement with the Landlord of a
property in Newcastle to surrender the lease.
The lease relates to a property formerly occupied by a
subsidiary of the Company that was sold in 2006. Following a
protracted legal dispute the Company made an out of court
settlement with the Landlord in 2013 but this resulted in the
Company being liable for the remainder of the lease which was due
to expire on 31 December 2022.
Since 2013 the Company has marketed the property but has been
unable to secure a tenant. Following discussions with the Landlord,
the Coalfield Regeneration Trust, the Directors have agreed a
surrender of the lease for a sum of GBP400,000. The total annual
cost to the Company for the property, including rent, rates,
insurance and ancillary costs, amounted to approximately
GBP240,000.
The settlement has been financed by a GBP400,000 unsecured loan
from the Company's largest shareholder, Mr Peter Gyllenhammar, with
a coupon rate of 9% per annum and a repayment date up to 31 March
2016 ("Loan").
Mr Jan Holmstrom the Chairman of Densitron said: "This
settlement brings to the close a situation that has cost the
Company considerably both in terms of cost and time and has been an
unwelcome distraction for the Company's management over several
years. Agreeing this settlement will now enable management to focus
entirely on the business going forward".
Related Party Transaction
Mr Peter Gyllenhammar is classified as a Related Party, as
defined in the AIM Rules. The entering into the Loan by the Company
is therefore classified as a transaction with a related party for
the purposes of the AIM Rules. In accordance, therefore, with the
AIM Rules, the directors of the Company, having consulted with the
Company's nominated adviser, Westhouse Securities Limited, consider
that the terms of the transaction are fair and reasonable insofar
as the Company's shareholders are concerned.
Enquiries:
Densitron Westhouse Securities
Grahame Falconer / Tim Martin Davison
Pearson Tel: 020 7601 6100
Tel: 0207 648 4200
This information is provided by RNS
The company news service from the London Stock Exchange
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