Minoan Group PLC - developing Itanos Gaia resort hotel project in Crete, Greece - Issues 70.7 million new shares at 1 pence each, an 11% premium to Friday's closing price, to DAGG LLP to clear GBP707,231 of the GBP1.4 million loan owed to DAGG. The remainder of the loan will be extended to December 31, 2024 at the same interest rate of 10%. For this, Minoan will pay a fee of GBP175,000, which will be added to the loan principal. DAGG will have warrants for 35.0 million Minoan shares reinstated at an exercise price of 1.1p. DAGG also will be given the right to name one director to the Minoan board.
"The board considers this to be a landmark decision by the lenders, and one which the directors take as a substantial vote of confidence in the short-term prospects of the company," Minoan says.
Current stock price: 0.97p, up 7.7% in London on Tuesday afternoon
12-month change: down 19%
By Tom Waite, Alliance News editor
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Minoan (MIN)