Business
Conversion of Loan Note, issue of warrant & equity
Conversion of Loan Note, issue of warrant & equity.
About this update from Valirx Plc
[{"type":"text","content":"\n \nRNS Number : 6495Y ValiRx PLC 18 May 2016 \n\n \n \n \n \nValiRx Plc\n(\"ValiRx\" or the \"Company\")\nDrawdown of £500,000 of Convertible Loan Notes and issue of warrants\n \nIssue of Convertible Loan Note (\"CLN\")\n \nValiRx Plc (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, announces that, further to the announcement made on 21 March 2016, it has issued the second Tranche CLNs of £500,000 to Bracknor Fund Limited (\"Bracknor\"). The Company has also received a conversion notice from Bracknor to convert £250,000 of the CLN into ordinary shares of the Company (the \"Conversion\"). Following the Conversion £250,000 of the loan notes remain in issue.\n \nThe Bracknor Convertible Loan Note facility provides that the Company can elect to drawdown up to a further £3.0 million of convertible loan notes on the terms set out in the announcement made 21 March 2016.\n \nIssue of Equity\n \nAs a consequence of the Conversion, the Company has conditionally issued and allotted 3,164,557 ordinary shares at a price of 7.9p per share in the Company in consideration of the £250,000 loan note. The 3,164,557 ordinary shares will rank pari passu with the existing ordinary shares. Application for the 3,164,557 ordinary shares has been made to the London Stock Exchange and trading in the shares is expected to commence on or around 24 May May 2016.\n \nFollowing the issue of equity above the Company's issued share capital will comprise of 52,383,487 ordinary shares.\n \nThe Company has now utilised its entire headroom to issue new ordinary shares for cash pursuant to the authorities granted to it by shareholders at the previous Annual General Meeting. A Notice of Annual General Meeting will shortly be posted to shareholders which will seek further authority to issue new shares for cash pursuant to s570 of the Companies Act on a non-pre-emptive basis.\n \nIssue of Warrants\n \nPursuant to the Bracknor agreement the Company has also agreed to issue Bracknor with a warrant over 8,333,333 ordinary shares in the Company, which will be exercised at a price of 9 pence per share at any time until the fifth anniversary of issue. The grant of the warrant is conditional on shareholder...