TIDMTRYB
RNS Number : 1597R
Tribe Technology PLC
25 October 2023
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain .
25 October 2023
Tribe Technology PLC
("Tribe Tech", the "Company" or the "Group")
Term Facility secured with Beach Point Capital
Tribe Technology PLC (AIM: TRYB), a disruptive developer and
manufacturer of autonomous mining equipment, is pleased to announce
that it has entered into a GBP3.0 million secured term loan
facility agreement with BPC UK Lending DAC (the "Lender" or "Beach
Point Capital") (together the "Facility").
Highlights
-- Injection of GBP3.0 million into the business to principally
refinance the Company's legacy debt arrangements and further
progress its previously outlined execution strategy .
-- Following drawdown of the Facility, the Company will have
repaid its entire GBP0.52 million existing debt facility with
Growth Finance Fund LP inclusive of accrued interest and fees.
-- The Facility is for a five-year term and bears interest at 13 per cent. per annum.
-- There is a 12-month repayment holiday commencing on drawdown.
Background to and reasons for the Facility
As outlined in the Company's AIM admission document published on
30 August 2023, the Group has historically been funded through a
combination of equity, debt, grants, prepaid revenue on orders and
subcontract manufacturing work revenues, totalling a combined
GBP9.9 million.
To date the Group has been successful in receiving firm
commercial orders for its first-generation Reverse Circulation
("RC") drill rig incorporating the Tribe Technology Drilling System
(the "TTDS GC 700"), which is currently in production, amounting to
over GBP10.5 million.
As part of the Group's admission to trading on AIM on 5
September 2023, the Group successfully raised approximately GBP4.6
million (before expenses) (the "Fundraise"). As set out in the
Company's announcement on 5 September 2023, the net proceeds of the
Fundraise receivable by the Group will be used towards (i)
fulfilling the existing order book and increase the Group's level
of inventory, (ii) pursuing the Group's product and technology road
map, and (iii) expanding engineering, sales, and support staff.
Using the Group's status as a publicly quoted company the Group
has successfully negotiated the entry of the Facility on terms that
are more favourable than what would otherwise be available to the
Group as a private company. The Group intends to immediately
drawdown the Facility and use the monies to, amongst other matters,
refinance the Group's legacy debt arrangements. In addition, the
Group intends to use any remaining funds, subject to the Group
maintaining a minimum cash balance of GBP1.0 million, to further
progress its previously outlined strategy. This includes bringing
forward the trials of the Group's sample system by undertaking
concurrent testing and pretesting prior to rig deployment.
Charlie King, Chief Executive Officer of Tribe Tech,
commented:
"Following our recent successful admission to trading on AIM, a
market operated by the London Stock Exchange Group Plc, we are
pleased to announce the entry into the Facility which further
strengthens the Group's financial position at a time where the
Group is at an important phase in the production of its first drill
rigs and sample systems.
"The focus now remains on completing construction of our very
first drill rig before the year end and converting our strong
pipeline of interest into further sales of Tribe Tech's
revolutionary autonomous drill rigs."
Terms and conditions of the Facility
Tribe Technology PLC (as guarantor), Tribe Technology Group Ltd
("TTGL") (as borrower and guarantor) and Tribe Technology Pty
Limited ("Tribe Tech AUS") (as guarantor) have entered into the
Facility which is secured by a debenture on all the assets of TTGL,
a parent company guarantee from the Group which is secured by a
debenture on all of the assets of the Company, and a guarantee of
Tribe Tech AUS, which is secured against all the assets of Tribe
Tech AUS.
Following drawdown of the entire Facility and the immediately
subsequent repayment of its existing facility with Growth Finance
Fund LP, the Group intends to repay its existing facility of
AU$221,150 with Mitchell Asset Management Pty Limited by 31
December 2023. The Facility is for a five-year term which bears
interest at 13 per cent, per annum payable monthly in arrears
commencing on drawdown. However, the Group is pleased to have
negotiated a 12-month repayment holiday commencing on drawdown of
the Facility. After this 12-month period, the Group is required to
repay the Facility by making equal monthly repayments of the
principal each month. Interest is payable monthly in arrears from
drawdown of the Facility. The Facility contains standard
representations, warranties, covenants, indemnities and events of
default for a loan of its type. This includes three ordinary course
financial covenants to be tested during the term of the Facility:
the cash covenant, the revenue covenant and the EBITDA covenant.
The cash covenant requires that cash held by TTGL shall not fall
below GBP1.0 million at any time. There are also ordinary course
fees payable to the lender, including an arrangement fee, a
prepayment fee and an exit fee ranging between 10% and 25% of the
Facility. The earlier the Facility is repaid, the lower the exit
fee will be.
-END-
For further information, please visit www.tribetechgroup.com or
contact:
Tribe Technology PLC via Tavistock
Charlie King, Chief Executive Officer
Eric Hampel, Chief Financial Officer
Allenby Capital Limited (Nominated Adviser
and Broker) +44 20 3328 5656
John Depasquale / Vivek Bhardwaj / Lauren info@allenbycapital.com
Wright (Corporate Finance)
Tony Quirke / Joscelin Pinnington (Sales &
Corporate Broking)
Tavistock (Financial PR) +44 20 7920 3150
Gareth Tredway / Rebecca Hislaire / Saskia tribetech@tavistock.co.uk
Sizen
About Tribe Tech
Established in 2019, the Group was founded to create a safer,
more efficient work environment through the development of fully
autonomous reverse circulation drill rigs in the mining industry.
The Group's core activities are the development, in-house
manufacturing, and sale of its autonomous RC Drill Rigs
incorporating its core proprietary intellectual property, the Tribe
Technology Drilling System ("TTDS").
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END
UPDBLBDGXBDDGXS
(END) Dow Jones Newswires
October 25, 2023 02:00 ET (06:00 GMT)
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