Business
Convertible Loan Notes
Convertible Loan Notes.
About this update from Distil Plc
[{"type":"text","content":"\n \n\n\n\nBlavod Wines and Spirits PLC ('the Company')\n\n8 October 2009\n\nConvertible Loan Notes ('CLNs\")\n\nThe Board is pleased to announce that it has agreed to raise\n£0.4 million by the issue of £0.4 million nominal of\nconvertible unsecured loan notes, and as such CLNs to the value\nof £0.4 million have been issued today,\n\nThe principal terms of the CLNs are as follows:\n\nInterest: Interest will become payable on the CLNs at a rate\nequivalent to 6% per annum on the total redeemable value of the\nnotes, such interest to be payable semi-annually in arrears on 31\nMarch and 30 September of each year.\n\nSecurity: the CLNs will be unsecured.\n\nTerm: the CLNs have a five year term maturing on 30 September\n2014, unless converted or redeemed earlier.\n\nRedemption : The CLNs shall fall to be repayable on the earlier of 30\nSeptember 2014 and an event of default. In addition, the Company has\nthe right to redeem the CLNs upon 30 days' written notice to CLN\nHolders.\n\nConversion: at the option of the CLN holders, the principal of\nthe CLNs shall be convertible at any time, in whole or in part, into\nnew ordinary shares of 1p each in the Company as follows:\n\n- at any time before 1 October 2010 at an equivalent price of 5p per\nshare (ie every £1 nominal of CLN converts to 20 new ordinary\nshares);\n\n- at any time between 1 October 2010 and 30 September 2011 at an\nequivalent price of 5.5p per share; and\n\n- at any time between 1 October 2010 and 30 September 2014 at an\nequivalent price of 6p per share.\n\nFor the avoidance of doubt, the conversion price is determined by the\ndate on which formal application is made by the CLN holder to the\nCompany, rather than the date on which any resultant shares are\nallotted or admitted to trading on AIM.\n\nPotential Dilution\nIn the event that all the £0.4 million of CLNs are converted to\nshare, this would result in the issue of a maximum of 8,000,000\nOrdinary Shares, representing 8.35 per cent of the share capital (as\nenlarged by the conversion of all the CLNs.)\n\nRationale for the Fundraising and use of Proceeds\nAs set out in the Company's AGM statement in late July, sales in the\nfirst quarter of the year had shown growth of c35% year on year. As a\nresult of this, the Company requires additional funding to provide\nworking capital to finance the continued rapid growt...