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Nature Group secures loan to aid 'extremely difficult' financial position
AIM-listed Nature Group, whose shares were suspended in March, said it had secure a £0.4m loan to pay off immediate liabilities, but warned that its financial position was still "extremely difficult".
The port reception and waste treatment solutions firm on Tuesday said the loan had been agreed with Fairweather & Sons.
The loan, repayable on or before 31 January 2019, allows the company to satisfy a number of near-term payment obligations, including tax liability.
Chairman Berend van Straten said: "The board of Nature Group is grateful to the Fairweather family for their considerable financial support for the company at this time. The proceeds of the loan will provide the company with the ability to repay their immediate liabilities, whilst the board acts to secure the long-term future of the company."
The company has also secured an extension to a verbal waiver, allowing the deferment of repayments for lease and debt financing facilities totaling £1m to Nature Oil & Gas Holding until the end of June.
However, Nature Group has stressed that its financial position is "extremely difficult", but that negotiations are underway with multiple parties to secure future financing.
"We would like to thank the many shareholders that have contacted the board offering their continued support. The ongoing assistance provided by DNB bank is greatly appreciated whilst these issues are resolved by the board," said van Straten.
As of 0954 BST, Nature Group's shares were unchanged at 3.15p.