E-learning software and training provider ILX Group has secured a £1.2 million investment from Praxis Trustees, in an effort to reduce its debt.
Praxis, a Channel Islands-based financial services group, will acquire 11.9 million new ordinary shares at a price of 10 pence each.
In a statement, ILX said that £500,000 of the investment will be used to reduce the group’s bank debt. The Aim-listed firm will use the remainder as working capital, to aid its international growth.
ILX’s chief executive Ken Scott has also agreed to invest £40,000 back into the company, by acquiring 400,000 new ordinary shares at the price of 10 pence per share.
The issued shares follow ILX’s admission last June that, for the full year ended 31 March 2012, its profits had fallen 35% to £960,000 (2011: £1.5 million).
At the time, the firm also said it was suspending its dividend to reduce its level of debt.
Following this latest deal, the company will have 31 million ordinary shares in issue. Praxis Trustees will hold 12.8% of the issued share capital.
The shares will be issued in two tranches. Following the agreement, Praxis Trustees subscribed for 4 million new shares on Wednesday. A second tranche, of 7.8 million shares is conditional on the director’s verdict at a general meeting to be held later this month.
Following the issue of the second tranche of shares, Wayne Bos will join the board as executive chairman succeeding Paul Lever. Lever will remain on the board as non-executive director.