Business
Loan Stock Amdmnt & Placing
Loan Stock Amdmnt & Placing.
About this update from Corero Network Security Plc
[{"type":"text","content":"\n Mondas PLC\n07 August 2006\n\n Mondas plc ('Mondas' or 'the Company')\n\n\n\n Proposed amendment to 8.75% convertible loan stock 2007 ('CULS') and Placing.\n\n\n\nMondas plc, the AIM listed Financial Markets software specialist, has today\nannounced details of a proposed amendment to the terms of its existing CULS to\nextend its redemption date, enhance the conversion rights and reduce the annual\ncoupon payable. At the same time the company has announced details to raise\n£1,000,000 through a placing of additional CULS on the amended terms\n\n\n\nBackground and reasons for the Proposed Amendments and the Placing\n\nThe CULS are due for redemption on 31 October 2007. Although the Company is\ntrading well, following improving trading conditions in the financial markets\nand the recent acquisitions of Eclipse and Blue Curve, the Mondas directors\nbelieve that the Company may not have the necessary financial resources\navailable to redeem the CULS in 15 months' time. It is clearly desirable to\neliminate any uncertainty caused by this situation and, accordingly, the Mondas\ndirectors propose to amend the terms of the CULS as set out below. The Mondas\ndirectors believe that this, together with the proposed placing, will strengthen\nthe Company's financial position, particularly when it are being evaluated as a\nvendor of large and complex systems to the financial sector. The proposed\namendments to the terms of the CULS, together with the net proceeds of the\nplacing of Additional CULS, which amount to approximately £0.92 million after\nexpenses, will allow the Company to expand its sales and marketing capability,\nto continue product development, to provide working capital and to take\nadvantage of the growth opportunities presented to it.\n\n\n\nCurrent trading and reasons for funding\n\nThe return of confidence in the financial markets has increased demand for\nMondas's products. This has been demonstrated by an increased level of\ncontracts with new and existing customers, a shortening of sale cycles and a\nsales pipeline which is both growing in value and increasing in quality. Since\nthe start of January, Mondas has sold new systems to Panmure Gordon, JM Finn,\nand Brewin Dolphin Securities. More recently, the Company has announced a\nsignificant contract with a major global bank based in the UK. Furthermore, it\nhas mad...