16 Nov 2015 07:47
16 November 2015
Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources
Paragon Diamonds Limited
('Paragon' or the 'Company')
Temporary Suspension
The Directors of Paragon Diamonds Limited, the AIM quoted diamond development company, announces it has requested a temporary suspension in the trading of its shares with immediate effect pending clarification of financial position.
Paragon currently has limited working capital and until a funding package has been secured there is a material uncertainty over the financial position of the Company.
The Directors of Paragon remain in negotiations with possible funding providers to secure finance in order to complete the acquisition of Mothae, provide development funding for Lemphane and to repay short-term debts including the £500,000 loan facility which is due on 18 November 2015. If this loan is not repaid within 5 business days of the due date this will constitute an event of default and the lender may request immediate repayment of the loan at 120% of the outstanding amount. Alternatively the lender has the option to convert the outstanding loan into ordinary shares of the Company at the lower of 5.22p, being the average share price on 17 June 2015 when the loan was issued, and 90% of the prevailing market price on the day that the loan is converted.
No assurances can be given regarding the terms and the timing of the funding arrangements that the Directors may secure. The Directors therefore have requested the suspension of trading in the Company's shares until such time as the Company's financial position has been clarified.
Further announcements will be made as soon as practicable.
**ENDS**
For further information please visit www.paragondiamonds.com or contact:
Philip Falzon Sant Manduca | Paragon Diamonds Limited | +44 (0) 20 7182 1920 |
Simon Retter | Paragon Diamonds Limited | +44 (0) 20 7182 1920
|
David Hignell Gerry Beaney | Northland Capital Partners Limited (Nominated Adviser)
| +44 (0) 20 7382 1100
|
John Howes Mark Treharne | Northland Capital Partners Limited (Sales and broking)
| +44 (0) 20 7382 1100 |
Felicity Winkles | St Brides Partners Limited | +44 (0) 20 7236 1177 |
Frank Buhagiar | St Brides Partners Limited | +44 (0) 20 7236 1177 |