LONDON (Alliance News) - WideCells Group PLC on Friday said its investor has exercised its option and converted rights under the convertible bonds for GBP80,000, together with a penalty payment of GBP120,000.
The stem cell healthcare company has entered into an issuance agreement with a provider of convertible bonds, European High Growth Opportunities Securitization Fund, to secure GPB2.7 million worth of funding in return for bonds convertible into shares with attached warrants.
There were three initial tranches of the bonds, with GBP635,000 disbursed upon signing the contract, GBP1.0 million delivered once a prospectus has been validated and approved by the Financial Conduct Authority, and GBP265,000 was automatically disbursed three calendar months after the second tranche.
Following all this, there are now four tranches to be delivered of an aggregate nominal value of GBP200,000 each.
On Friday, WideCells said it will issue 80.0 million shares. The stock closed 13% higher on Friday at 0.70 pence a share.
Following the admission, WideCells will have 291.4 million shares overall, with the European High Growth Opportunities Securitization Fund now holding 27.9% stake in the company.
In addition, the company issued a further drawdown notice under the financing agreement to the European High Growth Opportunities Securitization Fund for the aggregate sum of up to GBP1.5 million.
The convertible bonds will be issued in two tranches, with GBP1 million to be subscribed for and paid to WideCells immediately and GBP265,000 to be subscribed for and paid on June 6.
Thereafter, one further tranche of GBP200,000 to be subscribed for and paid to the company on the date which is 40 days after the June 6, or the next business day.