Business
Convertible Loan Facility of up to £4.0 million
Convertible Loan Facility of up to £4.0 million.
About this update from Valirx Plc
[{"type":"text","content":"\n \nRNS Number : 6702S ValiRx PLC 21 March 2016 \n\n \n \n \n \nValiRx Plc\n(\"ValiRx\" or the \"Company\")\n \nConvertible Loan Facility of up to £4.0 million and Issue of Warrants to enable expansion of the VAL201 trial to a multi-centre study\n \nLondon, UK. 21st March 2016: ValiRx Plc (AIM: VAL), a life science company with a focus on cancer diagnostics and therapeutics for personalised medicine, is pleased to announce that it has entered into an agreement with Bracknor Fund Ltd (\"Bracknor\"), a private mutual fund incorporated in the British Virgin Islands (\"BVI\"), pursuant to which Bracknor has agreed to subscribe for convertible loan notes with an aggregate principal amount of up to £4 million (\"CLNs\"). As part of the agreement, the Company has agreed to issue warrants to Bracknor (\"CLN Warrants\"). Further details of the CLNs and the CLN Warrants are set out below. \n \nConvertible Loan Note Facility\nSubject to certain conditions, Bracknor has agreed to subscribe for the CLNs in eight equal tranches of £0.5 million each (\"Tranche\"). The Company intends to issue the Initial Tranche shortly and then has the exclusive option to require Bracknor to subscribe for up to seven Tranches of £0.5 million at any time after the earlier of (i) 60 days after the issue of the previous Tranche (unless extended in accordance with terms set out in the agreement) and (ii) the date on which all existing issued CLNs have been converted into ordinary shares in the Company (together the \"Trigger Events\") provided that the Company gives notice to Bracknor requiring it to subscribe for a further Tranche within 30 trading days of a Trigger Event occurring. \n \nEach Tranche is convertible into ordinary shares of the Company (at the election of Bracknor) at the price equivalent to 90% of the lowest volume weighted average price of the Company's ordinary shares in the 15 trading days immediately preceding the date of conversion, subject to a floor price of (i) in respect of the initial tranche 37.5% of the lowest average share price in the 15 trading days immediately preceding the initial tranche issue date and (ii) in respect of the subsequent tranches at a rate of 30% of the lowest average trading price in the 15 trading days immediately prior to the relevant issue date. . The CLNs s...