Cloudcoco Regulatory News (CLCO)

30 Sep 2009 15:59



Pinnacle Telecom Group plc

("Pinnacle" or "the Company")

Issue of 10% Unsecured Convertible Loan Notes

Pinnacle (AIM: PINN), the provider of integrated telecommunications solutions and services announces the creation of £250,000 unsecured convertible loan notes ("Loan Notes") in units of £5,000, of which Loan Notes of a nominal value of £125,000 were issued today (the "Commencement Date") for cash at par.  This issue will provide the Company with additional working capital.

The Loan Notes, which are not transferable, may be redeemed (in whole or in part) by the Company, at its sole discretion, at any time.  The Loan Notes will become repayable on demand in the event of specified default by the Company.

The Loan Notes are convertible into Ordinary Shares by the Company at any time following the second anniversary of the Commencement Date, or by the holders of the Loan Notes at any time following the period of thirty days following the second anniversary of the Commencement Date. The conversion price in each case will be a discount of 15% to the mid-market price per Ordinary Share as at close of business on the date five days after service of the relative conversion notice, subject to a minimum of nominal value.  The Ordinary Shares to be so issued will rank pari passu in all respects with the existing Ordinary Shares in issue.

Interest will accrue on the Loan Notes, at 10 per cent per annum, from the Commencement Date to the earlier of the date of redemption and the date of conversion.  Interest will accrue from day to day on the aggregate principal amount of the Loan Notes outstanding from time to time and is payable monthly in arrears. 

Alan J Bonner, Chief Executive, subscribed at par for Loan Notes with a nominal value of £25,000. John C Anderson, Non Executive Director, subscribed at par for Loan Notes with a nominal value of £5,000.

Alan J Bonner, Chief Executive, stated:

"I am encouraged by the support received in this issue of unsecured convertible loan notes, which will be used as working capital to fund the company's drive to build a business of scale." 

30 September 2009

Enquiries:

Notes to Editors:

Pinnacle Telecom Group plc is a provider of integrated telecommunications, IT, Mobile and IP solutions serving the SME market. Operating across the UK, the Group provides a wide range of services to its clients, including telecommunications calls and access, broadband, mobile, IT integration and hosted services.