Business
General Meeting Statement
General Meeting Statement.
About this update from Amigo Resources Plc
[{"type":"text","content":"\n \n \n 8 March 2023\n \n \n \n Amigo Holdings PLC\n \n \n \n \n \n \n \n General Meeting Statement\n \n \n \n Amigo Holdings PLC (\"Amigo\" or \"the Company\"), a provider of mid-cost credit in the UK, will hold a General Meeting today to address its responsibilities under s656 of the Companies Act 2006, as described in the Notice of General Meeting given on 16 February 2023.\n \n \n At the meeting, the Company will also provide the following update:\n \n \n Since the release of the quarterly results on 23 February 2023, there has been no material change in the trading activity for the run-off of the legacy loan book.\n Demand for the new RewardRate brand remains strong. The conversion rate is improving but remains challenging and the current run rate for monthly originations remains in excess of £1m. As noted at the Q3 Results, lending to date has shown that conversion rates are higher for the non-guarantor product. Until Amigo has completed a capital raise, the Board is focusing activity on the most efficient use of capital. Given the higher acquisition cost per loan of the guarantor product and the higher conversion rates for the non-guarantor product, the decision has been taken to temporarily pause the guarantor loan offer. The Board remains confident in the long-term viability of the guarantor model.\n \n \n Amigo also reports the exit, on 28 February 2023, from its loss-making Irish business. The Ireland business ceased new lending activities in 2020. \n \n \n \n Capital Raise\n \n \n \n While conversations with potential investors to underwrite a £45m equity raise continue, Amigo has yet to secure the full amount required and the situation remains extremely challenging. As disclosed with Amigo's Q3 results, non-binding, indicative interest for between £10m to £15m of equity and £10m of exchangeable notes has been received. Under the terms of the Scheme, if, and as soon as, the Board expects that the Capital Raise will not be successful, it is legally bound to switch the Scheme to the 'Fallback Solution', which is an orderly wind-down of the business.\n \n \n \n \n \n \n Access to the General Meeting\n \n \n \n \n Amigo Holdings PLC will be holding the Company's General Meeting today at the Bournemouth Highcliff Marriott Hotel, 105 St Michael's Road, Bournemouth BH2 5DU at 10....