Business
Proposed Loan Note Conversion
Proposed Loan Note Conversion.
About this update from Petards Group Plc
[{"type":"text","content":"\n \nRNS Number : 3713X Petards Group PLC 23 November 2017 \n\n23 November 2017\n \n \nPETARDS GROUP PLC \nAIM: PEG\n(\"Petards\" or the \"Group\")\n \nProposed Conversion of Loan Notes\nPetards, the AIM quoted developer of advanced security and surveillance systems is pleased to announce that it will be posting a circular to Noteholders tomorrow convening a general meeting of Noteholders at which approval for the conversion of the Loan Notes into New Ordinary Shares will be sought.\nApproval of the Loan Note Conversion would result in the Company issuing 18,498,400 New Ordinary Shares in exchange for all of the Company's outstanding £1,479,872 Loan Notes in issue. \nAll capitalised terms in this announcement are as defined in the Circular to Noteholders to which will be available on the Company's website: www.petards.com.\n \n1. Background to and reasons for Modification of Noteholder Rights\nThe Loan Notes were issued in 2013 in connection with the Company's acquisition of the entire share capital of Water Hall Group plc. The Loan Notes are unsecured and are convertible into New Ordinary Shares at a price of £0.08 per New Ordinary Share. Since the Loan Notes were issued, the closing mid-market price of the Ordinary Shares has been consistently above £0.08. As at close of business on 23 November 2017, the mid-market price of the Ordinary Shares was £0.225.\nAt the present time the Company requires its cash reserves to finance its on-going working capital and investment activities. The Loan Notes mature in September 2018 and the Board does not wish to enter 2018 with the outstanding Loan Notes of £1,479,872 showing as current liabilities as it believes this may have an adverse effect on the perception of the Company from both a commercial and investment perspective. Therefore the Company is seeking the approval of Noteholders to convert all outstanding Loan Notes in issue into Ordinary Shares prior to the end of the current financial year.\nThe Board believes this to be in the best interests of the Company.\n \n2. Loan Note Conversion\nPursuant to the Loan Note Instrument, a meeting of Noteholders has the power, exercisable by Special Resolution, to sanction any abrogation, modification or compromi...