LONDON (Alliance News) - Clear Leisure PLC Friday said it has secured a GBP200,000 loan facility from one of its major shareholders which will be used for working capital.
Clear LEisure has secured the facility from Swiss investor Eufingest SA. It carries an annual 3.0% interest rate and is repayable on October 29, 2017. Clear Leisure plans to full drawdown the facility as soon as possible.
The company has the option of repaying the loan early without penalty, but also has the option to convert the outstanding balance into shares based on a 0.68 pence price before December 29, 2015.
After December 29, 2015, Eufingest will then have the option to convert the outstanding balance into shares at the same price.
To put that price into context, Clear Leisure shares were up 16% to 0.695 pence per share on Friday morning, rising from its closing price on Thursday of 0.56 pence.
Eufingest currently held more than a 10% stake in Clear Leisure prior to the deal, and based on that 0.68 pence price, if either party elected to convert the entire GBP200,000 into shares, Eufingest would look to gain around 294,117 shares.
To put that into perspective, Clear Leisure currently has around 203.1 million shares in issuance.
"We are pleased to have secured this loan from one of our longest standing shareholders and which will enable us to continue the process of restructuring the company to help us realise the value of our non-core assets," said Francesco Gardin, chairman and chief executive of the company.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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