Business
Convertible loan note issue
Convertible loan note issue.
About this update from Ascent Resources Plc
[{"type":"text","content":"\n \nRNS Number : 0193R Ascent Resources PLC 08 September 2014 \n\nAscent Resources plc\n(\"Ascent\" or \"the Company\")\nConvertible loan note issue\nThe Board of Ascent is pleased to announce that it has agreed a variation to the existing £5 million 2014 Convertible Loan Note Instrument (\"the Instrument\") pursuant to which Henderson Global Investors Limited and Henderson Alternative Investment Advisor Limited (together, \"Henderson\") subscribed for £2 million in principal amount of loan notes (\"Convertible Loan Notes\" or \"Loan Notes\") as announced on 5 February 2014 (\"the First Tranche\"). Under the terms of the variation, Henderson has agreed to subscribe for further Convertible Loan Notes of up to £2 million in principal amount on the terms of the amended Instrument (\"the Amended and Restated Instrument\") (\"the Second Tranche\"), as detailed below.\nBackground\nAs announced on 4 August 2014, Global Power Sources S.r.l (\"GPS\") and their partners, Salomon Werner HAB Privee Limited, formerly known as Salomon Partners WRS Werner Rothschild & CIE Limited (\"WRS\"), failed to make payment to Ascent of the £11.7m required to fund GPS's investment in Ascent as approved by shareholders in a general meeting held on 5 June 2014.\nAs a result, the board of Ascent has been obliged to explore alternative sources of funds, including maintaining an on-going dialogue with GPS in this respect. Whilst positive discussions continue, the Company has not yet concluded a replacement funding transaction and has therefore approached Henderson to agree the basis for further drawdowns of up to £2 million under the Amended and Restated Instrument.\nDetails of the New Convertible Loan Notes\nUnder the terms of the variation, Henderson has agreed to subscribe for up to an additional £2 million of Convertible Loan Notes. The Convertible Loan Notes will be issued in units of £1 and interest will be at a fixed rate of 9% per annum, which will be rolled up quarterly in arrears and included as principal to be repaid or converted. The Convertible Loan Notes together with the convertible loan notes issued in 2013 will be secured by a charge over the shares of the Company's principal subsidiaries, Ascent Slovenia Limited and Ascent Resources d.o.o. and will be convertible at any time into ordinary shares of 0.1 pence each in th...