LONDON (ShareCast) - (Sharecast News) - Dillistone Group announced on Wednesday that it has secured a £0.12m unsecured loan from a related party, to strengthen its working capital amid continued uncertainty in its markets.
The AIM-listed recruitment software provider said the funding would be provided by Yuriko Starr, the wife of its chief executive officer, via a loan agreement carrying an annual interest rate of 10.85% over a 48-month term.

Interest would be paid quarterly in arrears and in cash, while capital and interest could be repaid in full or in part at the company's discretion during the loan term.

The board described the fundraising as a prudent move to provide financial flexibility should market conditions remain difficult.

It said the loan ranked behind existing debt in terms of capital repayment priority.

The transaction constituted a related party arrangement under the AIM rules.

Following consultation with its nominated adviser Zeus Capital, Dillistone said its independent directors concluded that the loan terms were fair and reasonable for shareholders.

At 1100 BST, shares in Dillistone Group were up 2.86% at 9p.

Reporting by Josh White for Sharecast.com.

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