29th Jan 2015 16:06
LONDON (Alliance News) - The Black Sea Property Fund Ltd Thursday said it has agreed a financing deal that will provide it with up to GBP350,000 to fund its current running costs as it awaits approval for the extension of its life.
In December, The Black Sea Property Fund said it wanted to recommence investing in the residential real estate, holiday homes, commercial real estate and distressed real estate markets of Bulgaria.
The company said that GBP100,000 of the new, unsecured loan is to be drawn down immediately, while the remaining GBP250,000 may be drawn down if the Jersey Financial Services Commission approves the extension of the company's life.
In the event that approval fails to materialise, or if the company is unable to raise the funds needed to cover working capital requirements, the loan will be interest-free and used to fund winding up costs.
Any surplus would be paid back to the lender, Mamferay Holdings, which owns 28% of The Black Sea Property Fund. The matter of a significant shareholder lending to the fund prompted the company to consult its nominated adviser, Cairn Financial Advisers LLP, as to whether the terms of the loan were "fair and reasonable" to shareholders.
However, The Black Sea Property Fund also has the option to convert the loan and any interest into shares.
The issuing price would be determined by a volume weighted average price over a five day period.
Black Sea Property Fund shares were untraded on Thursday. The stock closed at 0.45 pence per share on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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