LONDON (Alliance News) - Cyber-security software group Defenx PLC said on Tuesday its shares were restored to trading as it signed an agreement with BV Tech Spa for an unsecured loan of EUR950,000, which is convertible into new shares at 1.8 pence per share.
Defenx shares were trading 19% lower at 10.10 pence each in morning trade.
The convertible loan will incur an interest rate of 6.0% per annum, with any balance of the loan and accrued interest that remains outstanding as at January 1, 2020 replayable in full.
EUR150,000 can be drawn down immediately from the loan, with the remainder available 45 days from October 1. Proceeds from the loan will go toward general corporate purposes.
Should the convertible loan be drawn in full and BV Tech request the conversion into share, 10.6 million shares will be issued, equal to 27% of Defenx's entire issued share capital.
The conversion of the loan is conditional on shareholder approval.