Cambridge Cognition Holdings plc (LON:COG), which develops and markets digital solutions to assess brain health, has announced that the Company has obtained a £3.0 million loan from Claret European Specialty Lending Company III, S.à r.l. Claret specialises in providing growth capital to innovative businesses. The Loan proceeds will provide the Group with additional working capital and enable investment in product development and solution integration.
The Loan will be drawn down in full immediately, has a fixed interest rate of 11.5% per annum and a term of 36 months. The Loan will be repayable, with interest, in 30 monthly instalments following an initial six-month interest only period. The Loan is secured over assets of the Company.
The Company will issue Claret with warrants to subscribe for £540,000 of new ordinary shares of 1 pence each in the capital of the Company. The exercise price of the warrants will be the lower of the volume weighted average price of the Ordinary Shares in the 5 days preceding or post execution of the Loan. The VWAP will be used to calculate the number of warrants issued. A further announcement will be made when the warrants are issued.
While the Loan is in place, Claret has the right of first refusal on future debt fundings of the Company and has the right to participate in any future equity financing up to an amount of £500,000 on the same terms as any other participant.
Commenting, Matthew Stork, Chief Executive Officer of Cambridge Cognition, said:
“We are pleased to have strengthened the balance sheet with the Loan which will support us as we continue to execute our strategy to grow the Company.”
Commenting, David Bateman, Managing Partner of Claret Capital Partners, said:
“We are excited to have started this relationship with the Cambridge Cognition team and to be able to support them with this Loan and their plans for growth and profitability. We are looking forward to working with the Company.”
