AEC Education plc
AEC, the educational programmes provider, announces that its wholly-owned subsidiary based in Singapore, AEC College Group (Singapore) (“AEC College, Singapore”), has entered into a loan agreement with Chief Executive, David Ho. The key terms of the loan agreement are as follows: Mr Ho has extended a loan of up to one million Singapore dollars (approx. £0.5m), to be drawn down in tranches of 250,000 Singapore dollars at a time, with interest of 8% to be applied to amounts drawn down and payable on a monthly basis (“the Loan”). The Loan, which is unsecured, is repayable on the first anniversary of the date of the first drawdown but will become repayable earlier in the event of new funding becoming available. It is intended that 500,000 Singapore dollars (approx. £250,000) of the Loan will be drawn down immediately.
The Loan will be used by AEC College, Singapore primarily for working capital purposes as it works towards the reinstatement of its EduTrust certification. As stated in the Company’s half year report, AEC is pleased to have the continuing support of its shareholders while it evaluates potential financing options and looks to further strengthen the business.
The Loan as described above constitutes a related party transaction under the AIM Rules as a result of Mr Ho being both a director of, and a substantial shareholder in, AEC. The Directors of AEC, other than Mr Ho, who have been so advised by the Company’s nominated adviser, WH Ireland Limited, believe that the terms of the Loan are fair and reasonable so far as the Company’s shareholders are concerned.For further information contact:
AEC Education plc Liam Swords, Chairman +44 (0) 7725 836811 WH Ireland Limited (NOMAD) +44 (0)161 832 2174 Dan Bate Biddicks +44 (0) 20 3178 6378 Katie Tzouliadis