12 June 2023

Vector Capital Plc

("Vector Capital", the "Company" or the "Group")

Loan facilities extended and broadened and Related Party Transaction

"A cautious, flexible approach to widen and deepen the loan book"

Vector Capital Plc (AIM: VCAP), a commercial lending group that offers secured loans to property developers and investors in England & Wales, is pleased to provide an update on the Group's loan facilities, including those provided by Vector Holdings Limited ('Vector Holdings').

Extension of wholesale banking facilities

The Board is pleased to announce that the Company's wholesale bank debt providers have increased debt facilities by £5.0 million, bringing the total wholesale bank facilities available to the Group to £45.0 million.

Within these overall wholesale bank facilities, the Group now has the capacity to drawdown £2.5 million toward loans secured by second charges, thereby allowing the flexibility for cautious and selective expansion of the Group's loan book into higher margin loan agreements.

Extension of loan facilities provided by Vector Holdings

On 29^th December 2022, the terms of an inter-company debt agreement with Vector Holdings for a £3 million loan (the 'Vector Holdings Liability'), entered into on 12 November 2020, were extended. The key terms of the extended debt agreement included:

Under the terms of a Relationship Agreement dated 18^th December 2020, Vector Holdings undertook not to demand repayment of the whole or any part of the Vector Holdings Liability without the prior written consent of at least two independent directors, except in the event of an insolvency.

At a Company board meeting on 9^th June 2023, the Board of Vector Holdings has agreed to increase the amount of the loan facility from £3 million to £4 million, with all other terms relating to the intercompany debt and the Relationship Agreement remaining unchanged.

The revised terms of the loan provide the Company with access to very competitively priced finance, significantly below the rate currently offered by third party funders, to be employed to increase the loan book at higher margins.

 Related Party Transaction

Vector Holdings is the parent company of the Group and holds a 75% interest in the Company. Mr. Agam Jain, a director of Vector Capital, is a controlling shareholder of Vector Holdings along with his immediate family. Accordingly, the extension of the inter-company debt is deemed to be a related party transaction pursuant to AIM Rule 13 of the AIM Rule for Companies.

The Company's Directors (excluding Mr. Agam Jain, who is directly related to this transaction), having consulted with Vector Capital's Nominated Adviser, WH Ireland Limited, consider the extended terms of the loan to be fair and reasonable in so far as the Company's shareholders are concerned.

Agam Jain, CEO of Vector Capital, added: "We are very pleased to announce the extension and broadening of our wholesale debt facilities and the extension of competitively priced debt facility from Vector Holdings. These facilities, combined with our resilient pipeline of new loan opportunities and the strength of our loan management systems, provides a base from which to target future growth as interest rates stabilise."

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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About Vector Capital:

Vector Capital provides secured, business-to-business loans to SMEs based in England and Wales. Loans are typically secured by a first legal charge against real estate. The Company's customers typically borrow for general working capital purposes, bridging ahead of refinancing, land development and property acquisition. The loans provided by the Company are typically for renewable 12-month terms with fixed interest rates.