Business
Castelnau Group Conversion of Outstanding Loan
Castelnau Group Conversion of Outstanding Loan.
About this update from Silverwood Brands Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (\"UK MAR\"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \nSilverwood Brands plc\n(\"Silverwood\" or the \"Company\")\n \nCastelnau Group Limited Conversion of Outstanding Loan (\"Castelnau\")\n \nPursuant to the announcement on 12 December 2022 concerning the loan facility with Castelnau Group Limited, Silverwood Brands is pleased to announce that Castelnau has exercised its right to convert the entire £1.5 million loan together with accrued interest into 2,284,637 Ordinary Shares at a conversion price of 70p. \nBackground to Castelnau Loan Facility\nAs announced on 12 December 2022, Castelnau the closed-ended investment company trading on the Specialist Fund Segment of the London Stock Exchange and managed by Phoenix Asset Management Partners (\"PAMP\"), entered into an agreement on 12 December 2022 with the Company to provide an unsecured loan facility of approximately £1.5 million (\"Loan\").\nThe Loan was applied towards general working capital requirements of the Company and contained provisions allowing for Castelnau, prior to midnight on 31 May 2023 (Conversion Period), to give notice to convert any or all of the outstanding Loan and accrued interest into ordinary shares at the conversion price (being the lower of 70p or the Market Price, as defined in the Loan, per share) (Conversion Price), subject to the conditions of the Loan.\nAdmission of shares\nApplication has been made for the 2,284,637 Ordinary Shares to be admitted to trading on AQSE and dealings are expected to commence on or around 5 June 2023. Following Admission of the new Ordinary Shares, the enlarged Share Capital will be 260,712,809 Ordinary Shares, each with voting rights.\nRelated Party Transaction\nDue to Andrew Gerrie being a non-executive director of Phoenix Asset Management Partners and a substantial shareholder in the Company, the transaction is deemed to be a related party transaction pursuant to AQSE Access Rule 4.6 of the AQSE Rules for Companies. The Company's directors (excluding Andrew Gerrie, who is indire...