LONDON (Alliance News) - Aggregated Micro Power Holdings PLC on Monday said it has raised GBP8.5 million to repurchase outstanding GBP10.01 million of convertible loan notes due 2021.
The renewable fuels provider said it will issue 8.5 million shares at a price of 100 pence each. The stock was untraded on Monday, last quoted at 110.00p per share.
The company said the placing price represents 9.1% discount to the closing mid-market price of 110p per share on Friday.
Following receipt of the net proceeds of the placing, Aggregated Micro Power intends to issue the call for the convertible loan notes. The maximum potential cost of redemption of the outstanding notes is GBP7.8 million.
The company's directors and management currently hold GBP2.2 million worth of notes, which they have committed to convert into shares.
In the event that all other holders of notes opt to convert some or all of their holdings into shares, the company intends to use the remaining proceeds of the placing for business expansion and growth.
"We are delighted and very grateful for the support shown by our existing and new shareholders in difficult market conditions," said Chief Executive Richard Burrell.
"The proceeds from the placing will enable us to simplify our balance sheet structure and provide working capital to accelerate our growth," added Burrell.
