Real Good Food PLC Extension to Funding Agreements (0721M)

TIDMRGD

RNS Number : 0721M

Real Good Food PLC

17 September 2021

Real Good Food plc

("RGF" or the "Group")

Funding Agreements: Extension to Redemption Dates, Related Party Transactions

The Company announces today that, following negotiations with the Company's three major shareholders, NB. Ingredients Limited ("Napier Brown"), Omnicane International Investors Limited ("Omnicane"), and certain funds managed by Downing LLP ("Downing") (together the "Major Shareholders"), it has now finalised an amendment deed (the "Amendment Deed") relating to the funding agreements (the "Agreements") set out in the appendix to this announcement.

The Agreements have been amended such that the final repayment dates of each of the Agreements have been extended to 19 May 2023 (the "Final Repayment Date") with no change to the interest rate payable by the Company pursuant to each Agreement. The repayment dates had previously been extended to 19 May 2022. The change provides additional financial flexibility for the Group to continue its balance sheet restructuring, and to accelerate and maximise the value of the remaining Group businesses, Renshaw and Rainbow Dust Colours.

Related Party Transactions

As Napier Brown and Omnicane are substantial shareholders of the Company and Judith MacKenzie, a director of the Company, is also a Partner of Downing, the Amendment Deed is deemed to be a related party transaction pursuant to the AIM Rules for Companies. Maribeth Keeling, Mike Holt, and Gail Lumsden, the Independent Directors of the Company for this purpose, having consulted with the Company's Nominated Adviser, finnCap Ltd, consider the terms of the Amendment Deed to be fair and reasonable insofar as the Company's shareholders are concerned.

The information communicated in this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Mike Holt, Non-Executive Chairman commented:

"The Board appreciates the support of its major shareholders in agreeing these amendments. Following the Group's sale of Brighter Foods on 11 May 2021, its indebtedness has halved, and the retained businesses are performing as expected. This continued funding will support the Group as it seeks to maximise shareholder value"

-ENDS-

Enquiries :

 
Real Good Food plc                                Tel: 0151 541 3790 
 Mike Holt, Executive Chairman 
 Maribeth Keeling, Group Finance Director 
 
 
finnCap Limited (Nomad and Broker)                Tel: 020 7220 0500 
 Carl Holmes / James Thompson (Corporate 
 Finance) 
 
 
MHP Communications (Financial PR)                 Tel: 020 3128 8100 
 Reg Hoare / Katie Hunt                            rgf@mhpc.com 
 
 
About Real Good Food 
 Real Good Food plc is a food manufacturing business serving several 
 market sectors including retail (own label and private label), 
 manufacturing and export. The Group has two businesses that make 
 up the Cake Decoration division, Renshaw and Rainbow Dust Colours, 
 with leading brands in their chosen markets.

Appendix

 
 Agreement                             Counterparty    Loan Principal 
                                                        (GBP) 
 Downing first Loan Note Instrument    Downing              1,233,451 
 Downing Chattel Loan Agreement        Downing                503,731 
 Downing Chattel Loan Agreement        Downing                348,424 
 Unsecured Loan Note Instrument        Downing                169,722 
 Unsecured Loan Note Instrument        Downing                108,707 
 Unsecured B Loan Note Instrument      Napier Brown            27,466 
 Unsecured B Loan Note Instrument      Napier Brown           856,666 
 Unsecured B Loan Note Instrument      Omnicane                29,224 
 Unsecured B Loan Note Instrument      Omnicane               856,666 
 Unsecured B Loan Note Instrument      Downing                283,913 
 Unsecured B Loan Note Instrument      Downing                286,668 
 
                                               TOTAL        4,704,638 
 
 Convertible Loan Note                 Napier Brown         3,400,899 
 Convertible Loan Note                 Omnicane             3,400,899 
 Convertible Loan Note                 Downing              2,004,774 
 
                                               TOTAL        8,806,571 
                                                      ---------------

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 rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

AGREAKNKFDNFEFA

(END) Dow Jones Newswires

September 17, 2021 01:59 ET (05:59 GMT)

Real Good Food (LSE:RGD)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024