Pennant secures short-term shareholder funding for working capital

Pennant International ($PEN-LSE) agreed an unsecured loan facility of up to £600,000 from major shareholder Brett Gordon, with an initial £400,000 draw expected immediately. Borrowings carry a 10% annual interest rate, with interest paid monthly and principal repayable 180 days after each draw. Early repayment is permitted without a penalty.

The facility supports working capital as the company’s overdraft limit reduces from £1.4 million to £1 million. Pennant expects customer milestone receipts in the fourth quarter and early the following year to help its cash position. It maintained its annual trading expectations and is targeting more than £500,000 of annual savings from restructuring. Those future receipts and savings are expectations; the loan does not remove execution or refinancing risk.

Sources:

• Pennant International — shareholder loan, RNS