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(Sharecast News) - Renewable energy-focussed development company Kibo Energy has settled outstanding fees owed to directors and management, it announced on Friday, by the issue of a 7% convertible loan note redeemable instrument.
The AIM-traded firm said the instrument provided for the issue of unsecured redeemable convertible loan notes of integral multiples of £1 each, to a total amount of £0.67m.
It said the subscriptions would be used to fund its working capital requirements related to outstanding salaries and fees due to management, directors and former directors, who were the notes' sole subscribers, prorated to the amounts owing to each subscriber as of Friday.
During the stated 16-month period, no salaries and fees were paid to management and directors.
"The notes are convertible to Kibo ordinary shares at a price identical to the price paid per share issued in the last private placing undertaken by the company, or any subsequent issue, whichever is the lower price," Kibo Energy explained in its statement.
It said the redemption date of the notes was 1 March 2022, with subscribers able to convert some or all their notes to shares at any time from the date of issue to five business days before then.
"Until the notes are repaid by the company or converted into ordinary shares, interest shall accrue and be paid on the principal amount of the notes outstanding at 7% per annum."
At 1431 GMT, shares in Kibo Energy were up 2.78% at 0.19p.
7 Dec 2023 15:30
IN BRIEF: Kibo Energy faces stiff dissent at annual general meeting
Kibo Energy PLC - Galway, Ireland-based company with energy projects in Africa and UK - Says 35% of shareholders reject resolutions on allotted equity securities, memorandum of association, and the articles of association of the company at an annual general meeting held on Thursday. These motions do not reach the minimum threshold of 75%. Failure to win approval for the memorandum of association and the articles of association of the company means the company cannot be updated at the companies registration office to reflect the reduction in par value and the increase in the authorised capital. Says all other resolutions are approved as they exceeded the required threshold of 50%, with around 24% opposing the re-election of Non-Executive Director Ajay Saldanha.
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