Tavistock secures loan from directors, trades in line with expectations

27th Sep 2019 10:24

(Sharecast News) - Wealth management firm Tavistock Investments said on Friday that it had secured a loan from chief investment officer Christopher Peel and two other directors as it looks to meet increased regulatory capital requirements.
Tavistock's £630,000 loan facility can be drawn down at any point over the next twelve months and comes with a facility fee of 5% of the funds committed and an interest rate of 10% of the amount drawn down upon.

The AIM-listed group also said the loan came with a non-utilisation fee of 3% of funds committed but not drawn down, payable on 30 September 2020.

Tavistock said it opted for the loan as it considered that raising capital via a share issue would be unduly dilutive for shareholders.

In terms of recent trading, Tavistock said it was in line with market expectations despite challenging market conditions caused by political instability, anxieties over Brexit outcomes and international trade disputes.

"It is impossible to determine how much more challenging conditions may become over the short term and any potential impact on the company's future trading before more normal conditions return," the group said.

As of 1025 BST, Tavistock shares had slumped 5.88% to 2.02p.