LONDON (Alliance News) - Shares in Graphene NanoChem PLC will be restored to trading on AIM on Friday, after the company agreed to issue up to GBP2.5 million in convertible loan notes.
Graphene NanoChem, which had its shares suspended when it delayed publication of its 2015 accounts and underwent a debt reorganisation, said it has arranged a loan note subscription agreement with Darwin Capital Ltd.
The loan notes are divided into 100 individual notes with a par value of GBP25,000 each and may be issued in three tranches and an initial trance of 30 loan notes has been issued. Graphene NanoChem said it anticipates net proceeds of GBP622,500 pursuant from the first tranche.
The notes are convertible at a price of the lesser of 18.4 pence per share or 90% of the average of five daily average share price calculations selected by Darwin from the 20 trading days prior to conversion.
Shares in Graphene NanoChem last traded at 14.50p on June 28.
Darwin has also been issued with detachable warrants for 1.0 million shares in Graphene NanoChem at an exercise price of 18.4p per share, exercisable over a five-year period. Further warrants equal to 25% of the loan note amount will be issued along with further loan note tranches.
Graphene NanoChem also said it expects its debt restructuring exercise to be unconditional by the end of the first quarter of 2017.
"Having successfully addressed the issues that led to our shares being suspended, this return to trading is a significant step in the right direction for us to build value for our stakeholders," said Jespal Deol, chief executive of Graphene NanoChem.
"We are continuing to make good progress in advancing our business in both our water and enhanced polymer divisions. The funds raised will allow us to effectively focus on crystallizing the opportunities that we have been working on and may seek to inject further capital into accelerating our operations further," added Deol.
By Adam Clark; adamclark@alliancenews.com
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