Sancus Lending Group Ltd on Thursday said it has agreed to sign new legal agreements with alternative investment manager Pollen Street PLC to extend its existing funding facility.
Guernsey-based Sancus Lending is an alternative property finance firm.
The previous facility had an existing capacity of £75 million and was due to mature on in January 2024. The new agreement will increase the capacity of the facility up to £125 million and the term will not expire before November 2026.
Sancus Lending said the renegotiation will provide significant additional funding capacity as the company seeks to grow its lending book.
Real estate investment and development firm Somerston Group has also committed to further invest in Sancus Lending by exercising warrants for over 94.3 million shares for £2.1 million, and a subsequent subscription for new bonds of £2.4 million.
Sancus Lending said it will apply to admit the 94.3 million new shares to trade on the Alternative Investment Market, and dealings are expected to commence next Wednesday.
Following the admission, Sancus Lending will have 584.1 million ordinary shares of no par value in issue.
Sancus Lending shares were flat at 1.67 pence in London on Thursday. Its share were down 42% over the past year.
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