Business
Unsecured Convertible Loan Ag
Unsecured Convertible Loan Ag.
About this update from Manx Financial Group Plc
[{"type":"text","content":"\n RNS Number : 9769H Manx Financial Group PLC 02 March 2010 \n \n\nFOR IMMEDIATE RELEASE \n2 March 2010\n \nManx Financial Group PLC (the 'Group')\n \nUnsecured Convertible Loan Agreement\n \n \nBackground\n \nFollowing the successful adoption of the resolutions at the recent EGM, the Group is pleased to announce that it has secured certain supplementary capital to meet the Regulatory requirements for significantly increasing commercial and retail lending in line with the business plan. This plan seeks to maximise the consolidation made by the Group during 2009 and anticipates the Group returning to profitability by the end of 2010, both by augmenting the core banking business and also by continuing the process of cost reduction.\n \nWhilst the Group has had excess liquidity for some considerable time, without further Regulatory Capital, this surplus cannot be deployed to take advantage of the excellent opportunities for growth that have been identified. Thus to accelerate the implementation of the plan, the independent directors have taken advice from the Group's professional advisors as to the most suitable method of capital reorganisation. As a result, and as a first step, the Group has negotiated an unsecured convertible loan note with two of the Group's shareholders, both of whom are directors.\n \nAlthough the capital raised by the loan note is adequate to release enough liquidity to implement the Group's immediate strategy, the directors and their professional advisors recognise that all shareholders might wish to have the opportunity to participate in any future capital increase to implement the second stage of the plan. Thus the directors are actively considering an open offer to all shareholders of ordinary shares when the Group's results are published later this year.\n \nConvertible Loan Agreements\n \nThe Group is pleased to announce that it has entered into an unsecured convertible loan agreement (\"the Loan\") to raise a total of £1,710,000 of additional capital for the Group, of which £500,000 will used to repay the existing loan made to the Group's banking subsidiary by way of a subordinated loan with a coupon of 12% in December 2008.\n \nThe Loan is for the following amounts:\n \n\n\n\n\nAmount\n£...