20 Nov 2015 13:22
20 November 2015
Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources
Paragon Diamonds Limited
('Paragon' or the 'Company')
Update Regarding Suspension
The Directors of Paragon Diamonds Limited, the AIM quoted diamond development company, are pleased to announce that following discussions with the provider of the £500,000 loan facility (the "Lender") that matured on 18 November 2015, the outstanding loan has been reclassified as a convertible loan note of £638,750 (the "Note") with effect from 19 November 2015 and the maturity date of the Note has been extended to 30 May 2016. During this period, the Lender is entitled to convert some or all of the outstanding balance of the Note into the Company's ordinary shares at the lower of 5.22p, being the average share price on 17 June 2015 when the loan was first issued, or 90% of the arithmetic average of 3 daily VWAP calculations, of the Lender's choosing, from the preceding 20 trading days in advance of a conversion notice.
Notwithstanding the extension to the maturity date of the Note, the Company still has limited working capital and there remains a material uncertainty regarding the Company's financial position. The Company's shares will therefore remain suspended pending clarification of financial position.
Shareholders should note that should the Company's shares remain suspended for 10 consecutive trading days from 16 November 2015, or for more than 30 days in a calendar year, an event of default can be called by the Lender.
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 |