Business
Update re. CVA shares and other matters
Update re. CVA shares and other matters.
About this update from Electric Guitar Plc
[{"type":"text","content":"\n\n \n30 April 2025\n \nElectric Guitar PLC\n(\"Electric Guitar\" or the \"Company\")\n \nCorporate update, update on the issue of CVA Shares and issue of warrants to directors\n \nTotal voting rights\n \nCorporate update\n \nThe Board of Electric Guitar (LSE: ELEG) is actively considering several potential acquisition targets, having been presented with a number of opportunities, the most promising being in the energy and AI sectors. Further announcements will be made in due course.\n \nUpdate on the issue of CVA Shares\n \nElectric Guitar also provides an update regarding the forthcoming issue and admission to trading on AIM of the fixed number of 236,782,175 new ordinary shares of 0.01 pence (the \"CVA Shares\") for the settlement of creditors pursuant to the Company Voluntary Arrangement (\"CVA\"), as announced on 27 March 2025.\n \nThe Supervisor of the CVA is continuing to process creditor claims and calculate the allocation of each creditor claim to the fixed number of CVA Shares and, accordingly, the CVA Shares have not yet been issued and allotted. A further announcement will be made in due course once this is completed and to confirm the expected date for the CVA Shares to be admitted to trading on AIM. In addition, as also announced on 27 March 2025, up to 306,665,817 new ordinary shares of 0.01 pence (\"Ordinary Shares\") are also expected to be issued at that time pursuant to the conversion of loan notes.\n \nIssue of warrants to directors\n \nThe Company continues to preserve cash with the directors not having drawn their contracted fees or salaries. In particular, Richard Horwood and Sarfraz Munshi have spent significant unremunerated time on the Company's recent CVA and fundraising and, since their respective appointments, to administer the Company's affairs and accelerate the execution of the Company's current strategy.\n \nIn light of the above, the Board of the Company has agreed to issue, in aggregate, 100,000,000 warrants to subscribe for new Ordinary Shares (the \"Warrants\") to Mr Horwood and Mr Munshi on the following terms, to align their interests with those of all the shareholders, and to compensate them for their unremunerated work:\n \n\n\n\n\n\n\n\nRichard Horwood\nNon-Executive Director\n\n\nSarfraz Munshi\nNon-Executive Director\n\n...