Business
Repayment of Loan Note
Repayment of Loan Note.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \nRNS Number : 9903V Keras Resources PLC 03 February 2017 \n\nKeras Resources plc / Index: AIM / Epic: KRS / Sector: Mining\n3 February 2017\nKeras Resources plc ('Keras' or 'the Company')\nRepayment of Loan Note\n \nKeras Resources plc, is pleased to announce that it has repaid the loan note in the principal amount of £563,889, as detailed in the announcement dated 1 February 2016. \n \nRepayment of Loan Note\nOf the total outstanding balance of £609,000 (including interest of £45,111), £239,700 has been repaid in cash and the remaining balance of £369,300 will be converted into ordinary shares of 0.1p each in the Company (\"Ordinary Shares\"). The price of this conversion has been set at 0.37p per Ordinary Share (the \"Conversion Price\") which will result in a total of 99,810,827 Ordinary Shares being issued to third parties and two Directors of the Company in two tranches (the \"Loan Conversion Shares\"), as part of the loan is held by entities that are controlled by Dave Reeves and Peter Hepburn-Brown.\n \nThe first tranche of 55,200,000 Loan Conversion Shares will be issued immediately. The remainder of the loan note is held by an entity controlled by Dave Reeves and 44,610,827 Loan Conversion Shares will be issued to this entity as part of a second tranche following the Company's AGM on 11 February 2017, assuming the passage of Resolutions to increase the Company's share authorities.\n \nThe Company plans to settle additional outstanding liabilities to certain Directors and members of the management team via the issue of additional Ordinary Shares following the AGM on 11 February 2017 assuming the passage of Resolutions to increase the Company's share authorities. Further announcements will be made as appropriate following the AGM. \n \nRelated Party Transaction\nThe issue of Loan Conversion Shares to Dave Reeves and Peter Hepburn-Brown constitutes a related party transaction in accordance with AIM Rule 13. The independent directors consider after consultation with the Company's Nominated Adviser, that the terms of the issue of the Loan Conversion Shares to Dave Reeves and Peter Hepburn-Brown are fair and reasonable, in so far as its shareholders are concerned.\n \nApplication for Admission to Trading on AIM\nApplication has been made for the admission of the first tranche of Loan Co...