LONDON (Alliance News) - London Capital Group Holdings PLC Wednesday said it has entered into a convertible loan note instrument relating to the subscription of GBP2.0 million in principal amount of unsecured convertible loan notes in its capital.
In a statement, London Capital Group said that Hargreave Hale is subscribing for half of the principal, with Tyler Rameson subscribing for the other.
The conversion price of the loan notes is yet to be determined.
In connection with, and conditional on, the convertible loan note subscription, the company will issue warrants to the institutional investors to subscribe for new shares in proportion to the number of convertible loan notes to be subscribed for, each at a price of 45 pence per share.
The news comes after the group earlier this year announced a GBP17.5 million proposed financing through the issue of convertible loan notes to GLIO Holdings and institutional investors.
The institutional investors' convertible loan notes will become due for subscription once the conversion price has been determined, based on the assumption that there is no outstanding event of default and London Capital Group's net asset are not less than GBP8.5 million.
London Capital Group shares Wednesday closed down 3.2% at 28.31 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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