(Alliance News) - Primorus Investments PLC on Wednesday said it has agreed an early repayment deal for its AUD500,000 of outstanding Zuuse Pty Ltd loan notes.
The agreement covers the full AUD500,000 - around GBP273,000 - face value of the series B Zuuse loan notes, which are due at the end of 2019. Primorus has chosen to receive rolled up interest of AUD57,205 in stock at AUD1 per share.
Primorus invested the AUD500,000 in Zuuse back in October 2018 and, of the AUD5 million series B notes outstanding, it was the only noteholder "not to take full settlement of both face value and coupon in stock".
Upon settlement, Primorus will return AUD500,000 in cash to treasury and hold the 57,205 Zuuse shares and 1.0 million options with an AUD0.50 strike price.
Primorus Executive Director Alastair Clayton said: "It is terrific to be able to report that we have, in line with guidance, executed the agreement to redeem our Zuuse loan notes. Originally due December, Zuuse have redeemed these notes now as part of a balance sheet consolidation associated with a soon to close AUD15 million capital raise ahead of a planned liquidity event in 2020.
"Effectively in the space of 10 months Primorus has generated AUD557,000 in share and option value for a capital deployment of only AUD500,000, this represents an annualised return on investment approaching 135%. We hope the value of these shares and options will appreciate considerably over the next 12 months, thereby generating further potential gains with a carrying cost of investment of zero, an enviable position for our shareholders. Our only regret is that we didn't have more investable cash to deploy in this opportunity."
Shares in Primorus were up 4.8% at 0.13 pence in London on Wednesday afternoon.
By Anna Farley; annafarley@alliancenews.com
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Primorus Inv. (PRIM)