Brady plc announced that it has (through its subsidiary, Brady Trading Limited ("Brady Trading")) entered into an uncommitted secured loan agreement for a total facility amount of £5.0 million (the "Facility") with Hanover Acquisition Limited ("Hanover"). Brady Trading intends to immediately draw down £3.0 million under the Facility and to apply the proceeds of this initial draw down towards the refinancing the existing Brady Trading and Brady Credit Trading Limited £3.0 million facility announced on 13 November 2019. The full proceeds of the Facility, if available to the Company, would meet the Group's current funding requirements to January 2020 and would additionally provide funding to support to the Group through the anticipated low point of its First Quarter 2020 working capital cycle in February 2020. As security for the Facility, the Company, Brady Trading and Brady Credit Trading Limited will grant first ranking security over all of their assets (including, and not limited to, all shares held by it in any member of the group from time to time). Interest will be charged on the drawn amount under the Facility at a floating annual rate of 2.5% over the prevailing Bank of England base rate. The Facility is repayable immediately on demand by Hanover (the "Repayment Date") and is otherwise capable of repayment by Brady Trading in full without penalty on three business days' notice at any time. The Facility will cease to be available if repayment and/or cancellation is demanded by Hanover or made by the Company (the "Termination Date"). The Facility is also repayable in the event of a change of control or the sale of all or substantially all of the assets of the Group or an illegality event. Under the Facility, Brady Trading has agreed to meet the costs and expenses (including legal fees) reasonably incurred by Hanover in connection with entry of the Facility not exceeding £25,000 (excluding VAT and documented disbursements), such expenses to be paid by Brady Trading within 30 days of the date of the Facility. Hanover is interested in 56.2% of the Company's issued share capital and, under the AIM Rules for Companies ("AIM Rules"), Hanover is therefore deemed to be a related party of the Company. As a result, entry of the Facility by the Company is a related party transaction pursuant to Rule 13 of the AIM Rules. The directors of the Company consider, having consulted with Cenkos Securities plc in its capacity as the Company's nominated adviser, that the terms of the Facility are fair and reasonable insofar as the shareholders of the Company are concerned.