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Mirada secures one-year £3m loan in bid to convert pipeline
Audio-visual content interaction specialist Mirada has entered into a secured one-year loan facility for up to £3m, it announced on Wednesday.
The AIM-traded firm said the proceeds from the facility were to be used alongside its existing debt financing facilities for general working capital purposes, including the implementation of customer contracts announced during 2017.
Its board said it believed that monies drawn down from the facility would strengthen the company's balance sheet, whilst giving it the opportunity to secure new customer contracts, and negotiate and renew other debt financing facilities, such as invoice discounting facilities.
Mirada said the Facility represented the best financing option currently available, to allow the company to satisfy its short-to-medium term working capital requirements, and to convert its pipeline of new business opportunities into new customer contracts.
The facility comprised two tranches - £1.5m to be drawn down within two months of the date of the facility, failing which the facility would be cancelled, and thereafter up to a further £1.5m which could be drawn down in minimum tranches of £0.1m, with any amount not drawn down within 11 months of the date of the facility then being cancelled.
Mirada said it intended for the first part of the facility to be drawn down "imminently".
The facility would be for one year, and therefore funds drawn down under it would be repayable by 6 March 2019.
Mirada could elect to give notice of early repayment of the amount drawn under the facility in whole or in part, at any time after the date which is two months following the date of the facility, subject to any repayment being for a minimum amount of £0.05m or multiples thereof.
Such amounts repaid would cease to accrue interest and could not be re-borrowed or redrawn.
The facility would bear an interest rate of 15% per annum on monies drawn down, which would be payable quarterly in arrears.
Should an event of default occur, an additional 2% interest per annum would be charged until the loan has been repaid in full.
"The company is currently in an expansion phase and is investing in the deployment of its recently won contracts, which have intensive working capital requirements," said CEO José Luis Vázquez.
"We are very grateful for the support provided from our largest shareholder, which will greatly help with the cash flow requirements of our current deployments and in converting our strong pipeline of new business opportunities."