Business
Issue of Equity and Loan Agre
Issue of Equity and Loan Agre.
About this update from Symphony Environmental Technologies Plc
[{"type":"text","content":"\n RNS Number : 4072A Symphony Environmental Tech. PLC 01 August 2008 \n \n\n\n\n\n\n\n\n\n\n1st August 2008\n\n\n\n\n\n\nSYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC\n\n\nISSUE OF EQUITY\nHEADSTART CONVERTIBLE LOAN VARIATION\nTOTAL VOTING RIGHTS\n\n\n\nSymphony Environmental Technologies Plc ('Symphony' 'Company' or 'the Group'), the degradable plastics and waste-to-energy Group, announces that further to the convertible loan facility agreement announced on 15 December 2006 and the variation agreement ('Variation Agreement 1') announced on 15 May 2008 with Headstart Global Fund Limited and Headstart Global Aggressive Fund Limited (together 'Headstart') a further agreement ('Variation Agreement 2') has been reached with Headstart. \n\nThe terms of Variation Agreement 1 stipulated that Symphony could repay the outstanding loan capital and accrued interest by 30 July 2008. In the event that the loan was not discharged by this date it was agreed that Headstart might resume conversions on 31 July 2008, and further, that a 5% fee would be added to the outstanding loan balance.\n\nAdditionally, Variation Agreement 1 provided that in consideration for Headstart agreeing to issue no further conversion notices until 30 July, Symphony would pay to Headstart the sum of £50,000. \n\nVariation Agreement 2 extends the period in which Symphony will discharge the loan to 30 March 2009. Additionally on 5 August 2008 Symphony will pay to Headstart the fees as detailed above, accrued, interest and an additional fee of 5% of the current £380,000 capital balance, which is consideration for Headstart agreeing not to issue further conversion notices until 3 November 2008. \n\nSymphony is discharging its obligations as to fees, and accrued interest as detailed above, and is further reducing the size of the Company's obligations to Headstart, Symphony has for that purpose placed 3,500,000 new ordinary shares of 1p each (the 'Placing Shares') to a number of investors at a price of 4p per share (the 'Placing') rai...