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(Sharecast News) - Sabien Technology Group announced on Monday that it would enter into an invoice factoring facility with Parris Group, the family office of its executive chairman Richard Parris, to provide additional working capital as it expanded sales of its M2G Cloud Connect service.
The AIM-traded company said the facility, which remained subject to final contract, would advance 80% of the value of invoices assigned by its UK trading subsidiary.
It said the agreement would carry a finance charge of 2.5% per month on any advances, and would be secured by a debenture.
The facility was in addition to funding previously provided by Parris Group announced last August.
As Parris Group is controlled by a company director, the arrangement constituted a related party transaction under the AIM rules.
The independent directors - Ed Sutcliffe, Charles Goodfellow and Ranald McGregor-Smith - said that, after consulting with the company's nominated adviser Allenby Capital, the terms were fair and reasonable for shareholders.
"Sabien thanks Parris Group for its continuing support," said chief financial officer Ed Sutcliffe.
"This facility will enable Sabien to deliver on its existing sales order pipeline, ensuring timely execution and fulfilment of customer commitments.
"It marks a significant step forward in scaling operations to meet growing demand."
At 1438 GMT, shares in Sabien Technology Group were up 3.17% at 7.48p.
Reporting by Josh White for Sharecast.com.
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