Source - Alliance News

RegTech Open Project PLC on Wednesday said it received an insufficient payment from AvantGarde Group SpA in relation to a loan agreement between the two dating back to August.

Shares in RegTech were down 24% at 11.00 pence each in London on Thursday morning.

The London-based technology business focuses on automation and optimisation of regulatory compliance operations, and floated on the main market of the London Stock Exchange in August 2023. The same month, RegTech entered into a capital loan agreement with AvantGarde Group.

RegTech has since served drawdown notices for £4.0 million, of which £2.9 million remains to be advanced by the Milan-based brand experience agency. The remaining debt is accruing compound interest at a rate of 15% per annum.

On Wednesday, the company received bank confirmations of £100,000 payments from AvantGarde on behalf of Regtech Italy, well below the £1.4 million payment expected by December 31 under the shareholder loan agreement.

The £100,000 payment came after additional funding arrangements were put in place by AvantGarde with a third-party provider.

On December 6, RegTech announced that it had identified £3.6 million of payables to transfer to RegTech Italy for set-off on a pound-for-pound basis under the loan agreement. The company said it is working with RegTech Italy to complete the set-off process.

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