Brady PLC (LON:BRY) has secured a £3mln loan agreement with its two largest shareholders, Coltrane Master Fund and Kestrel Opportunities.
The risk management software firm said the funds will be used to repay a previous loan from investment house Hanover, which wants to take the company private with an £8.3mln cash offer, announced in mid-October.
READ: Brady signs loan agreement with investment house Hanover
Brady added that the loan will also provide enough cash to support its working capital requirements until the end of January next year, after the first deadline for shareholders to accept Hanover’s offer.
However, if the offer lapsed, the company said it was “free to arrange additional funding” to support itself beyond January when it will implement a strategic product plan to secure its long-term future.
The news sent Brady’s shares 11.9% higher to 11.8p in mid-morning trading on Thursday.