24 March 2022

Mobile Tornado Group plc

("Mobile Tornado", the "Company" or the "Group")

Variation to revolving loan facility and notice of results

Mobile Tornado (AIM: MBT), the leading provider of instant communication mobile solutions to the enterprise market, announces that the Company has today varied the terms of its Revolving Loan Facility agreement (the "Facility Agreement") with InTechnology Plc ("InTechnology"), details of which were first announced by the Company on 27 September 2018.

The Facility Agreement was due to expire on 26 September 2022 and has been extended for a further 12 months until 26 September 2023. In addition, the maximum principal amount which may be drawn under the Facility Agreement has been increased from £300,000 to £500,000. All other terms of the Facility Agreement remain unchanged, as follows:

·      Any amounts drawn down by the Company pursuant to the Facility Agreement will bear interest at a rate of 10% per annum.

·      The Facility Agreement allows for monies to be drawn down, repaid and redrawn again in any manner and any number of times by the Company until the agreement expires.

·      At the expiration date of the Facility Agreement, all monies shall be repayable by the Company to InTechnology together with any accrued interest thereon.

·      A 2% facility fee is payable on any new amounts drawn down by the Company pursuant to the Facility Agreement. The facility fee is only payable in respect of amounts drawn under the additional £200,000 provided pursuant to the variation of the Facility Agreement and any monies repaid and subsequently redrawn will not incur a further facility fee.

As at the date of this announcement, the amount drawn under the Facility Agreement is £300,000.

The additional capital will support the financing of the Company's continued investment in its R&D activities, principally the development of its comprehensive Resource Management Platform, an update on which will be provided in the Company's annual results to be announced on 31^st March 2022. 

As InTechnology is a substantial shareholder in the Company (as defined in the AIM Rules for Companies ("AIM Rules")), the variation to the terms of the Facility Agreement constitutes a related party transaction under Rule 13 of the AIM Rules. The independent directors of the Company (save for Peter Wilkinson, who is a controlling shareholder of InTechnology), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider the variation to the terms of the Facility Agreement to be fair and reasonable insofar as the Company's shareholders are concerned. 

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