Business
Issue of Convertible Loan Stock
Issue of Convertible Loan Stock.
About this update from Pipehawk Plc
[{"type":"text","content":"\n \n\n\n\n\n 13 August 2010\n\n PipeHawk Plc\n (\"Pipehawk\" or the \"Company\")\n\n Issue of £1 million Convertible Unsecured Loan Stock to Director\n\nThe Company announces that it has issued £1 million of Convertible Unsecured\nLoan Stock 2014 (\"CULS\") to Gordon Watt, the Chairman of the Company. The CULS\nhave been issued to replace loans made by Gordon Watt to the Company amounting\nto £1 million.\n\nIn March 2010, the Company's bankers gave the Company notice that it intended to\nwithdraw all the facilities that it had made available to the Company. The\nDirectors sought to obtain replacement facilities from other banks but were\nunsuccessful. Gordon Watt agreed to advance further funds to the Company on\nsimilar terms to the loans he has previously advanced to the Company on the\nunderstanding that negotiations would commence on converting £1 million of loans\ninto convertible unsecured loan stock.\n\nThe principal terms of the CULS are as follows:\n\n-     The CULS may be converted at the option of Gordon Watt at a price of 7p\nper share at any time prior to 13 August 2014;\n\n-     Interest is payable at a rate of 10 per cent. per annum on the principal\namount outstanding until converted, prepaid or repaid, calculated and compounded\non each anniversary of the issue of the CULS. On conversion of any CULS, any\nunpaid interest shall be paid within 20 days of such conversion;\n\n-     The CULS are repayable, together with accrued interest on 13 August 2014\n(\"the Repayment Date\");\n\n-           The Company has the option, after one year, to repay the CULS\nbefore the Repayment Date, subject to the Company providing 10 days' notice and\npaying a premium of 10 per cent. of the principal amount repaid;\n\n-           Except as may be agreed with the Panel on Takeovers and Mergers, no\nconversion shall be permitted which would result in Gordon Watt and persons\ndeemed to be acting in concert with him holding in excess of 29.99 per cent. of\nthe voting rights of the Company.\n\nThe directors, other than Gordon Watt who took no deliberation in the\ndiscussions, consi...