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Integumen PLC - Unsecured Loan Facility Agreement with Cellulac

RNS Number : 8861P
Integumen PLC
15 June 2020
 

AIM share code: SKIN

 

Integumen PLC

 

("Integumen" or "Company")

 

Unsecured Loan Facility Agreement with Cellulac Limited

 

The Company has today announced its audited results for the year ended 31 December 2019.  As reported, 2019 was another transformational year for Integumen.  Building on an already successful business model, better than expected sales growth from higher revenues per client, lower management overhead from disposal of non-performing assets, and expansion into new areas requiring an increase of both employees and capacity, have set the business on a strong footing for 2020.  At the year end (31 December 2019) the Company had cash balances of £1.2m.  Managing working capital while rapidly growing is a delicate balance. Since the year end there have been the following developments:

 

·      Labskin laboratories, York, UK, increased size from 3,000 to 6,000 square feet[i].

Working capital to support £2m confirmed orders in by the end of March.

Investment of £250,000 to ramp-up production of Modern Water's reagent bacteria under 3-year agreement.

·    New employees joined the Company during the COVID19 lockdown due to increased demand.

·    Doubling of production capacity of Modern Water's reagent bacteria[ii]

·    Miniaturisation of RAWTest AI equipment for SARS-CoV-2[iii] in wastewater and dental clinics at University of Aberdeen containment level 3 for development.

 

In order to give the Company some additional flexibility to manage this growth, the Board has entered into a £400,000 loan facility ("Loan") with Cellulac Limited ("Cellulac"); the principal terms of the Loan are as follows:

 

Amount of Loan:

Cellulac has made available to the Company a loan facility of up to a maximum of £400,000 .

Term:

The term of the Loan is 24 months.

Security:

The Loan is unsecured.

Interest rate:

The interest rate is 5% per annum on drawn amounts.

Drawdown :

Under the Loan the Company has  the ability to draw four equal amounts of £100,000 per month beginning 30 June 2020 and ending on 30 September 2020 ("Drawdown Period").

Fees:

No arrangement or other fees are payable by the Company in connection with the Loan.

Repayment:

Interest only is payable during the Drawdown Period; Capital and Interest payments are payable over the remaining term of the Loan in equal monthly instalments.

Currently there is no intention to draw down under the facility, which has been put in place to provide additional flexibility, if needed, to meet current and expected demand over the coming months.

 

Related Party Transaction

 

Cellulac is a subsidiary of Cellulac PLC  and is treated as a related party under the AIM Rules for Companies ("AIM Rules"), as both Gerard Brandon and Camillus Glover, directors of Integumen, are directors of Cellulac Limited and shareholders and directors of Cellulac PLC.  As such, Messrs Brandon and Glover  are not regarded as independent and have taken no part in the Board's consideration of the terms of the Loan with Cellulac Limited.  Ross Andrews, Chairman, and Fionan Murray, Operations Director, are regarded as independent directors ("Independent Directors") for the purpose of Rule 13 of the AIM Rules. Integumen owns 9.35% of Cellulac's issued share capital.

 

The Independent Directors, having consulted with SPARK Advisory Partners Limited, the Company's Nominated Adviser, considers that the terms of the Loan to be fair and reasonable in so far as shareholders are concerned.

 

Contacts

 

Integumen plc

Gerard Brandon, CEO

 

+44 (0) 734 0055 648

SPARK Advisory Partners Limited

(Nominated Adviser)

 

Neil Baldwin/Andrew Emmott

+44 (0) 113 370 8974

Turner Pope Investments (TPI) Limited (Broker)

Andy Thacker / Zoe Alexander

+44 (0) 20 3657 0050

 

About Integumen plc

Integumen is a scientific research and AI-as-a-Service company focused on production and analysis of bacteria, virus and toxins utilising artificial intelligent data analytics in regulatory technology, from scientifically proving the impact of skincare product claims on skin microbiome for top 10 global cosmetic company clients to remotely detecting water contamination in real-time.

 

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Integumen

Price: 2.69

Market: AIM
Market Cap: £29.02 m
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