30th Dec 2013 11:34
LONDON (Alliance News) - Blue Star Capital PLC Monday said Chief Executive Officer Anthony Fabrizi has agreed convert a portion of a loan owed to him by the company into shares.
The company, which invests in the homeland security industry, said Fabrizi agreed to convert GBP26,000 of the shareholder loan owed to him, at a price of 0.5 pence per share, into 5.2 million new shares in the company.
Blue Star Capital said that, as well as the agreed conversion, it has repaid GBP96,000 of the loan in cash, and now has a total of GBP85,292 outstanding under the loan.
To preserve the group's cash, Blue Star Capital said Fabrizi previously had agreed to waive interest on the loan until the end of January 2014, being the final redemption date for the loan.
Following the conversion, Fabrizi will hold a 2.4% stake in the company, with 9.4 million shares.
Shares in Blue Star Capital were trading 5.6% lower Monday morning at 0.637 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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