Business
Extension of Unsecured Convertible Loan Notes
Extension of Unsecured Convertible Loan Notes.
About this update from Manx Financial Group Plc
[{"type":"text","content":"\n \n \n \n FOR IMMEDIATE RELEASE 22 July\n \n \n 2022\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Manx Financial Group PLC (the \"Group\")\n \n \n \n \n \n \n Extension of Unsecured Convertible Loan Notes\n \n \n \n \n \n \n \n Jim Mellon and Burnbrae Limited (\"Burnbrae\") have agreed to extend outstanding unsecured convertible loans of £1.7 million, due to expire on 31 July 2022, for a further five years to 31 July 2027. A loan of £1.2 million is from Burnbrae and the remaining loan of £0.5 million is from Jim Mellon himself. The new annual interest rate will be 7.5% (previously 5.0%) and the new conversion price will be 8.0 pence per share (previously 7.5 pence). All other terms are unchanged, including the ability for the Company to repay the loans at any time during the period.\n \n \n \n \n \n The extension of the loans is a Related Party Transaction under the AIM rules as Jim Mellon is a director of the Group and indirectly wholly owns and is Chairman of Burnbrae and Denham Eke, also a director of the Group, is Managing Director. As a result, Jim Mellon, Denham Eke and Greg Bailey (who is deemed in concert with Jim Mellon) recused themselves from voting in the transaction. The Group's Independent Directors (being the Board with the exception of Jim Mellon, Denham Eke and Greg Bailey) consider,\n after consulting the Group's Nominated Adviser, that the terms of the loans are fair and reasonable insofar as the Group's shareholders are concerned. In reaching this conclusion the Independent Directors, having considered the most suitable method of preserving the regulatory capital funding required for the continued expansion of the Group's principal subsidiary, Conister Bank Limited, reviewed the costs and practicality of alternative third-party finance, as well as the possibility of a rights issue, and concluded that the terms for the extension were both fair and reasonable for all shareholders.\n \n \n \n \n \n \n \n \n THIS ANNO...