Eatonfield draws £250k from funding partner

PROPERTY group Eatonfield said it has enough funding to continue to the end of August, but still needs its banks to agree to a standstill agreement.

The AIM-listed Cheshire-based group said that it had drawn down £250,000 from a facility provided by joint venture partner Jenard Properties, in return for 25 million new shares at 1p. This will take Jennard’s stake in the company to 13.1%

Eatonfield  said the money would be “used to fund potential acquisitions as part of the board’s plans to provide a degree of stability to the group’s financial position.

It added that on Friday Jennard agreed to make available a further £250,000 under the terms of the equity draw-down facility – meaning that £900,000 is available to it.

In a statement to the stock exchange Eatonfield said:” The directors anticipate that the remaining funds available, if drawn down in total, will provide Eatonfield with sufficient working capital through to 31 August 2010.

“The directors continue to pursue other options to raise further equity and therefore increase the level of working capital funding available to the group.”