TIDMARE

RNS Number : 8822S

Arena Events Group PLC

11 November 2019

11 November 2019

Arena Events Group plc

("Arena", the "Company" or the "Group")

New contracts and short-term finance facility

Arena Events Group plc, the integrated event solutions business, announces that it has recently been awarded a number of new contracts across its US, UK and MEA divisions. These projects are due for delivery in the first half of 2020 and will require upfront investment in both equipment and additional working capital.

The Company is therefore pleased to have agreed terms with its major shareholder, Lombard Odier Investment Management ("LOIM") for a new short-term financing facility of GBP2.0 million ("New Finance Facility") to support the delivery of these contracts. The board of Arena (the "Board") considers that the New Finance Facility is the most beneficial form of short-term working capital finance for shareholders, given it will not result in equity dilution.

Arena has entered into an agreement, dated 8 November 2019, with LOIM in regard to the New Finance Facility. The terms of the facility state that GBP2 million will be available for drawdown, repayable 6 months from inception, with a 2% arrangement fee and an additional 5% premium on the drawn funds. The New Finance Facility is subordinated to the Company's existing facilities with HSBC UK plc ("HSBC").

LOIM is classified as a "substantial shareholder", and is considered a "related party" under the AIM Rules and, therefore, entering into the New Finance Facility is deemed to constitute a related party transaction for the purposes of AIM Rule 13. The Board have consulted with Cenkos Securities plc, the Company's nominated adviser, and consider that the terms of the New Finance Facility are fair and reasonable insofar as the Company's shareholders are concerned.

Ken Hanna, Arena's Chairman, commented:

"The Board is pleased with the continued support of LOIM and this new facility demonstrates their confidence in the Company going forward. Our business is, at times, capital intensive and the need for additional finance reflects the Group's positive performance in winning new contracts which together with the, already secured, multi-million pound contracts for the US Ryder Cup and the Seating and Structures contracts for Tokyo Olympics, sets the Group up for a strong 2020."

This announcement contains inside information.

Enquiries:

 
 Arena Events Group plc 
  Greg Lawless (CEO) 
  Steve Trowbridge (CFO) 
  Cenkos Securities (Nomad and          +44 (0) 203 770 3838 
  Broker)                                +44 (0) 207 397 8900 
 Max Hartley / Max Gould (Corporate 
  Finance) 
  Julian Morse (Sales) 
 
 Alma PR (Financial PR)                +44 (0) 203 405 0205

Josh Royston, John Coles, Helena Bogle

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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November 11, 2019 02:00 ET (07:00 GMT)

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