Business
Issue of Convertible Loan Note to raise €100,000
Issue of Convertible Loan Note to raise €100,000.
About this update from Conroy Gold & Natural Resources Plc
[{"type":"text","content":"\n \n30 October 2019\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (596/2014/EU) (\"MAR\").\n\nConroy Gold and Natural Resources plc\n\n(“Conroy Gold†or “the Companyâ€)\n\nIssue of Convertible Loan Note to raise €100,000\n\nConroy Gold and Natural Resources plc (AIM: CGNR), the gold exploration and development Company focused on Ireland and Finland, is pleased to announce that it has raised €100,000 through the issue of an unsecured convertible loan note (“Convertible Loan Noteâ€) to Hard Metal Machine Tools Limited (the “Lenderâ€). The Lender is a company 99% owned by Mr Philip Hannigan, an existing shareholder of the Company with a beneficial interest in 2,011,577 ordinary shares of €0.001 (“Ordinary Sharesâ€) representing 8.49 per cent. of the current issued ordinary share capital of the Company. Mr Hannigan has already lent the Company €250,000 through another convertible loan note, as announced on 15 July 2019.\n\nThe net proceeds of the Convertible Loan Note will be used for general working capital purposes and exploration programme costs.\n\nTerms of the Convertible Loan Note\n\nThe Company has entered into an unsecured convertible loan note agreement for a total amount of €100,000 with the Lender which have been created pursuant to a loan note instrument. The Convertible Loan Note has a term of three years and attracts interest at a rate of 5% per annum which is payable on the redemption or conversion of the Convertible Loan Note. The Convertible Loan Note is unsecured.\n\nThe Convertible Loan Note, including the total amount of accrued but unpaid interest, is convertible at the conversion price of £0.06, equivalent to a 20.60 per cent premium to the closing mid-market price of the Ordinary Shares on 29 October 2019. The Lender has the right to seek conversion at any time during the term of the Convertible Loan Note.\n\nUnless the Lender has given prior notice to convert, the Convertible Loan Note will be repaid immediately prior to the completion of an offer or agreement pursuant to which any person or those acting in concert acquires over 50% of the issued share capital of Conroy.\n\nThe Lender shall be entitled, on serving written notice on the Company, to require the Company to redeem all or any part of the Convertible Loan Note at p...