LONDON (Alliance News) - Nektan PLC on Friday said it expects all inter-conditional transactions to complete on Monday next week, resulting in a combined reduction in debt of 45% and fresh equity investment.
The gaming technology platform provider said the transactions include the conversion of GBP4.7 million of the series A convertible loan notes, being 58% of the outstanding GBP8.1 million balance. The company intends to issue 43.5 million shares at a price of 15 pence each.
The stock closed 5.3% lower on Friday at 12.08p a share.
Nektan said it will convert GBP650,000 debt and GBP187,000 interest owned to Executive Director Gary Shaw into equity, resulting in an issue of 5.6 million shares at the same price.
In relation to the convertible loan notes conversion, the company said Shaw intends to convert GBP300,000 plus GBP77,425 accrued interest into Nektan's 2.5 million shares. Meanwhile, Non-Executive Chair Jim Wilkinson will be converting GBP250,000 in notes plus GBP77,225 accrued interest, resulting in Nektan issuing a further 2.2 million shares.
These transactions will result in a stronger balance sheet, Nektan said, with a reduction in the total level of debt to GBP6.5 million from GBP11.4 million.
Following the admission, the company will have 110.5 million shares overall.
"With the majority of outstanding debt now resolved and our cash burn greatly reduced, Nektan is in an even stronger position to capitalise on our business model, proprietary technology, the increasing portfolio of premium casino games content, our major gaming partners and the growth trajectory we have established globally," said Nektan Chief Executive Lucy Buckley.
