RE: RNS out10 Aug 2018 08:16
Key Highlights:
· Ncondezi has to date received a number of proposals to refinance or restructure the existing US$ 5.1m Loan (the "Restructuring")
· Following review of the proposals, a Loan restructuring, including an extension, is required to enable the Company to enter into shareholder resolutions so as to successfully refinance or restructure the Loan
· The Company has submitted a proposal to Loan holders ("Lenders"), which includes the following amendments to the existing Loan agreements:
o 12 month extension
o 12% interest rate, paid at maturity. Represents 52% reduction over previously agreed rates
o Ability for Lenders to swap debt for equity in part or in full at a conversion price of 10.0p per share, representing a premium of 33% to the closing share price on 9 August 2018 (conditional on shareholder approval)
o Ability for Ncondezi to redeem the Loan before maturity in full or in part