Business
Variation of Convertible Loan
Variation of Convertible Loan.
About this update from Symphony Environmental Technologies Plc
[{"type":"text","content":"\n RNS Number : 5582M Symphony Environmental Tech. PLC 30 January 2009 \n \n\n\n30 January 2009\n\n\nSYMPHONY ENVIRONMENTAL TECHNOLOGIES PLC\n\n\nHEADSTART CONVERTIBLE LOAN and WARRANTS VARIATION\nISSUE OF EQUITY\nDIRECTORS DEALINGS\n\n\nNew Variation Agreement\nSymphony Environmental Technologies Plc ('Symphony', 'Company' or 'the Group'), the degradable plastics and waste-to-energy Group, announces that further to the Convertible Loan Agreement made between the Company and Headstart Global Fund Limited and Headstart Global Aggressive Fund Limited ('Headstart') on 13 December 2006 and announced on 15 December 2006, and previous variation agreements between the Company and Headstart dated 27 September 2007, 8 May 2008 and 30 July 2008, a new variation agreement ('New Variation Agreement') was entered into by the Company and Headstart on 28 January 2009. \n\nPursuant to the terms of the New Variation Agreement:\n\n\n\nThe principal amount of the outstanding convertible redeemable loan notes ('Loan Notes') will be reduced from £340,000 to £240,000;\n\n\nSubject to repayments being made in accordance with the New Variation Agreement, the remaining Loan Notes will not be convertible; and\n\n\nThe balance of the Loan Notes will be repaid over the next 12 months - with an option for early repayment without penalty\n\n\n\nConversion Shares \nPursuant to the New Variation Agreement, Headstart issued two final notices of conversion on 28 January 2009 in respect of an aggregate of £100,000 nominal of Loan Notes. As a result of the conversion, which was at the rate of 1.9p per ordinary share, 5,263,157 ordinary shares of 1p each in the Company ('the Conversion Shares') were to be issued. As agreed with the Company, Headstart directed that the Conversion Shares be issued to six members of the Board of Symphony for an aggregate price of £110,000 (2.09p per share) and that such monies would be paid to Headstart. Details of the Conversion Shares issued are set out below. \n\nRepayment of the Loan Notes \nUnder the terms of the last variation agreement dated 30 July 2008, the Company was obliged to repay all outstanding Loan Notes and accrued i...