Shares in Aferian PLC (AIM:AFRN) jumped 78% to 0.8p after the technology group secured a further short-term extension to its $16.5m secured banking facilities as it pursues a sale of its businesses or the company itself.
It said it had agreed with Barclays Bank, Bank of Ireland and HSBC to extend the repayment date of the facilities to 20 March.
The facilities were originally due to expire on 30 September 2025 and have been rolled over several times, most recently to 13 February 2026.
This latest extension is designed to give the company time to continue exploring a sale of its Amino and 24i businesses, as well as a potential sale of the group.
The repayment date may be extended again beyond 20 March with the consent of the senior lenders, although Aferian cautioned there can be no guarantee of a further extension.
A loan arranged by the company’s largest shareholder, Kestrel Partners LLP, also remains unchanged and, including capitalised interest accrued to date, has a principal amount of about £1.593m and a maturity date of 15 April 2026.
Aferian said it continues to run a formal sale process under the Takeover Code and is also examining whether a sale of one or more subsidiaries, or their business and assets, or other funding solutions would provide a more beneficial outcome for stakeholders.
Several credible parties are engaged in advanced discussions over alternative options aimed at safeguarding the group’s trading operations, although some of the options being explored would result in proceeds materially below the outstanding amount of the banking facilities.
At the same time, the group is incurring significant exceptional advisers’ costs and faces other near-term working capital requirements, leading it to explore additional sources of funding.
Aferian warned there can be no certainty that any alternative option will be progressed, that any sale will be concluded, or that sufficient working capital will be available when required, and said there is no certainty that any offers will emerge from the formal sale process or as to the terms of any such offer.