Major shareholders give Malvern £0.25m loans

Educational services provider Malvern International has entered into loan agreements with its two major shareholders, KSP Investments and CG Corp, whereby KSP and CG Corp will each loan the company £0.25m, it announced on Monday.

The AIM-traded firm said the loans were unsecured, accrued no interest and had no fixed repayment date.

It said the loans were expected to be fully drawn by the end of December with around 60% of the proceeds being used towards funding new projects and 40% helping toward working capital requirements at SAA-GE, the acquisition it made in October.

The investment in SAA-GE was a “temporary requirement”, the board explained, as management seeked to strengthen operations and increase enrolment revenue by proceeding with various changes and initiatives.

“The investment towards the online projects relate to the announced English is Fun project - learning English through games in collaboration with Oxford University Press - and another online project Malvern is currently working on,” the board added in its statement.