The loan will provide enough cash to support the company until the end of January and past the first deadline for shareholders to accept a takeover offer from investment house Hanover
() has secured a £3mln loan agreement with its two largest shareholders, Coltrane Master Fund and Kestrel Opportunities.
The risk management software firm said the funds will be used to repay a previous loan from investment house Hanover, which wants to take the company private with an £8.3mln cash offer, announced in mid-October.
Brady added that the loan will also provide enough cash to support its working capital requirements until the end of January next year, after the first deadline for shareholders to accept Hanover’s offer.
However, if the offer lapsed, the company said it was “free to arrange additional funding” to support itself beyond January when it will implement a strategic product plan to secure its long-term future.
The news sent Brady’s shares 11.9% higher to 11.8p in mid-morning trading on Thursday.
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
In exchange for publishing services rendered by the Company on behalf of Brady PLC named herein, including the promotion by the Company of Brady PLC in any Content on the Site, the Company receives from said issuer...
FOR OUR FULL DISCLAIMER CLICK HERE