Business
Trading update and Fund Raising
Trading update and Fund Raising.
About this update from Dillistone Group Plc
[{"type":"text","content":"\n\n\n23 August 2024\nDillistone Group Plc\n(\"Dillistone\", the \"Company\" or the \"Group\")\nTrading update and Fund Raising\n \nDillistone Group PLC, the AIM quoted supplier of software for the international recruitment industry, provides a trading update and is pleased to announce that it has agreed to raise GBP300,000 through the issue of convertible loan notes (\"Loan Notes\") and £60,000 through the issue of new ordinary shares (the \"New Ordinary Shares\") (together the \"Fund Raising\").\n \nThe Group announced, on 12 June 2024, that its market remained challenging and, if anything, had softened further in the second quarter. This softness has continued into the third quarter.\n \nToday, however, the Group is pleased to confirm that the results for the six months ended 30 June 2024 are likely to be in line with management expectations, which would equate to a significant improvement in operational profitability, compared to the first half in the previous year. The business was again operationally cash generative in the period.\n \nThe Board considers the Fund Raising to be a prudent course of action in case the Group's markets continue to be challenging for an extended period. The proceeds from the issue of the Loan Notes and the New Ordinary Shares will therefore be used to provide the Group with additional working capital.\n \nThe Loan Notes, which will be drawn down fully in one tranche when required by the Company, will be provided by Mike Love, the former Chairman of Dillistone, and each of the current Directors (together \"Noteholders\") of the Company as follows:\n \n\n\n\n\nGiles Fearnley\n\n\n£60,000\n\n\n\n\nJason Starr\n\n\n£90,000\n\n\n\n\nIan Mackin\n\n\n£30,000\n\n\n\n\nSteven Hammond\n\n\n£15,000\n\n\n\n\nPaul Mather\n\n\n£15,000\n\n\n\n\nSimon Warburton\n\n\n£15,000\n\n\n\n\nJulie Pomeroy\n\n\n£5,000\n\n\n\n\nMike Love\n\n\n£70,000\n\n\n\n\n \nThe Loan Notes carry an interest coupon of 9.85 per cent pa over their maximum term of 48 months, with a conversion price of 14.0 pence per new Dillistone ordinary share, representing a premium over the current price of 55.6%. Interest will be payable quarterly in arrears and will be satisfied in cash. Various rights are built into the agreement for early repayment or conversion.\n \nThe issue of the Loan Notes to the Direct...