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(Sharecast News) - Westminster Group announced on Friday that it has secured a 0.5m unsecured credit facility from strategic investor Pantheon A Family Office to provide short-term financing flexibility as it expands and delivers recently secured projects.
The AIM-traded firm said the facility, which has a one-year term, would not bear interest and any funds drawn would be repayable within six months.
As part of the agreement, Pantheon waived future interest payments on funds drawn under Westminster's existing convertible loan note (CLN) instrument, in exchange for a reduction in the conversion price from 3p to 2p per share.
The company said the change would result in a minimum annual interest saving of 0.1m.
Pantheon had committed not to convert any notes for a period of 12 months, with all other terms of the loan notes remaining unchanged.
Westminster said Pantheon holds a 27.8% stake in the company, and is represented on the board by Jing Zhou.
As a substantial shareholder, the transaction was deemed a related party transaction under the AIM rules.
The independent directors, after consultation with the company's nominated adviser Strand Hanson, concluded that the terms were "fair and reasonable insofar as the company's shareholders are concerned".
Commenting on the agreement, Westminster CEO Peter Fowler said: "Pantheon is an extremely supportive investor in the business and this latest funding facility demonstrates their continued support and strong belief in the company and its future growth and success.
"To have a facility like this, effectively an interest free overdraft, available, if required, for short term use will be a great asset."
Reporting by Josh White for Sharecast.com.
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