Libertine Holdings, a Sheffield-based developer of Linear Generator technology, has entered into a bridging loan agreement with Reliant FZCO to support the finalisation of new investment.
It follows news earlier this week that Libertine Holdings was set to engage an insolvency practitioner following a failure to secure short-term funding while it waited to receive a £2m investment from investors in India and the UAE (Corporate International Financial Services Ltd and Reliant FZCO).
Under the terms of the bridging loan agreement, Reliant FZCO will provide two tranches of £110,000. The first tranche is expected to be received on 16 August and the second tranche is expected to be received on 14 September, to support the working capital requirements of the business.
It is intended that the conditional subscription agreement entered into between the company and Corporate International Financial Services Limited will be terminated. Instead it is intended that Reliant FZCO and the company will vary the terms of their original conditional subscription agreement to increase Reliant FZCO’s subscription from £1m to £2m.
Libertine Holdings noted that given the company’s financial situation, and the timing uncertainty around the receipt of funds, the Board still plans to engage an insolvency practitioner to seek advice on the appropriate next steps.
Trading in the company’s ordinary shares on AIM continues to be suspended.
