Proventec secures £500k loan
STEAM cleaning and coatings group Proventec has secured a £500,000 short term loan with an unnamed European institutional investor.
The Liverpool-based group said the facilities will be used for working capital. Amounts drawn under the facility will have an interest rate of 16% per annum and are repayable on 30 September 2009.
In a statement Proventec said: “The company confirms that it is considering a range of financing options including the potential issue of new equity and has received indications of interest from a number of existing and new shareholders. The board will be making a further announcement on the progress on this fundraising shortly.”
Last month the company signed the exclusive agreement for the distribution of fire retardant products for the pressure treatment of timber with Dr Wolman GmbH, a BASF subsidiary which supplies wood preservatives and fire protection products.
Under the agreement, Magma’s Firestop pressure treatment product for timber will be distributed by Wolman throughout Europe, except in Benelux which will be directly supplied by Magma.
