Last checked at 12 Oct 2012 10:26
For immediate release 12 October 2012
Blue Star Capital plc
("Blue Star Capital" or "the Company")
Shareholder Loan Update
Blue Star Capital is pleased to announce that further to the announcement dated 1 October 2012, the Company has successfully completed an extension to the shareholder loan agreement (the "Loan") entered into on 28 April 2011, and thereafter extended on 1 June 2012. The original amount of the Loan was £400,000 which, with the accrued interest at 10%, had been due for repayment by 30 September 2012.
Save as set out below, the terms of the Loan remain unchanged, except that repayment, which was scheduled for close of business 30 September 2012, has now been deferred until 30 November (the "Redemption Date").
As at 1 October 2012, the amount outstanding under the Loan (including interest and repayment premium) was £481,667 ("Revised Principal"). The Revised Principal will continue to accrue interest at 10% per annum until the Redemption Date. In addition a further repayment premium will be paid as follows:
1. 5% of the revised Principal if the Loan is repaid on or before 31 October 2012; or
2. 10% of the Revised Principal if repaid after 1 November 2012.
The Company has further agreed that the warrants issued to the providers of the Loan at the time of the original loan agreement will be amended by no later than 31 December 2012, such that the exercise date of the warrants will be extended from the date currently specified to a date 24 months thereafter, being 31 March 2016.
Anthony Fabrizi and a company connected with Noel Lyons (both individuals being non-executive directors of the Company) are amongst those that are providing the Loan and are each a related party for the purposes of AIM Rule 13. The independent directors of the Company, being The Rt Hon The Lord Dear Kt QPM DL LLB, Peter Varnish OBE and General Sir Michael Wilkes KCB CBE consider, having consulted with the Company's nominated adviser Daniel Stewart & Company plc ("Daniel Stewart"), that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.
Enquiries:
Blue Star Capital plc | Tony Fabrizi | Tel:0777 178 2434 |
Daniel Stewart & Company plc (Nomad & Joint Broker) | David Hart Director, Corporate Finance Martin Lampshire, Head of Corporate Broking | Tel: 020 7776 6550 |