RNS -Reorganisation of funding arrangements, placing, update29 Jul 2020 08:15
21 July 2020
Minoan Group Plc
("Minoan" or "the Company")
Reorganisation of funding arrangements, placing, update and General Meeting
The Board of Minoan is pleased to announce the successful reorganisation of its only secured borrowings (the "Existing Loan"), the cancellation of warrants and rights to future warrants and a small pre funded placing to provide further working capital.
Whilst the transaction is complicated and involves short term cost it will result in a significant reduction in the long term fully diluted capital for the benefit of all shareholders.
The refinancing is being undertaken by a group of existing shareholders in the Company through a special purpose vehicle DAGG LLP ("DAGG" or "New Lender"). As a result of agreements with the existing and new lenders, and subject to the approval of the shareholders at a General Meeting to be held on 6 August 2020, the terms of the loan, warrants, and the rights attached thereto will be as follows:
1. DAGG will effectively acquire the Existing Loan, amounting to circa GBP1.136m at today's date, from the existing lender ("Zachary");
2. the existing security and current interest rate of 10% per annum will remain in place and the Existing Loan will be extended to 31 July 2021;
3. the New Lender will receive 35 million warrants to subscribe for Ordinary Shares in the Company at 1.4p per share. The warrants are to expire on 31 May 2022, approximately 16 months earlier than the old warrants in 4 below;
4. the right of a company associated with the existing lender ("Silja") to receive warrants equal to 17% of the number of Ordinary Shares issued at any time by Minoan will be cancelled as will the existing 87,276,998 warrants exercisable at various prices. As compensation for this, and for giving up all other rights, the Company will pay Silja GBP250,000 which will be used to subscribe for 25,000,000 Ordinary Shares at par;
5. in addition, the Company will issue 626,427 zero coupon redeemable Preference Shares of 0.00001 pence each to Zachary, redeemable at GBP1 each when a distribution or return of capital is made to Minoan's Ordinary Shareholders.
The Company has also announced today that it is proposing to raise approximately GBP200,000 through the issue of new Ordinary Shares at a price of 1.1 pence per share. The Chairman, Christopher Egleton and two directors of subsidiary company Loyalward Limited, being David Raby and Nicholas Day, have indicated their intention to participate in this placing.
You live in the past Arsenal. would suggest you read through the above but I think its beyond you, dismissing it without even reading it - similar to your reaction to Plumbus comments.
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