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Redstone gets 6 mn pounds in funding; shares up

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CIOL Bureau
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LONDON, UK: British IT and communications firm Redstone, which has been exploring ways to further reduce debt, said it secured up to 6 million pounds of new funding and also reached an agreement with Eckoh Technologies Plc regarding a loan facility.

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Shares of Redstone, which recently sold its telecommunications division to Daisy Group Plc for 17 million pounds, were up 12 per cent at 5.87 pence by 0751 GMT on Thursday on the London Stock Exchange.

Redstone also said executive chairman Alan Coppin would step down from the board following the posting of its accounts to shareholders.

Coppin will be replaced by Stephen Yapp, 52, who will join the board as non-executive director, effective immediately, the company said in a statement.

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Redstone said the fundraising would help in general working capital purposes and strengthening its balance sheet.

The company said it reached a standstill agreement with Eckoh regarding the loan facility of Redstone's unit Symphony Telecom Holdings.

In a seperate statement, Eckoh said as part of agreeing to restructure the loan, it would get an arrangement fee of 530,000 pounds.

"We believe that the substantial arrangement fee together with the renegotiated terms of the agreement compensate Eckoh appropriately for the delay in repayment of the loan," Chairman of Eckoh Chris Batterham said in a statement.

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