22nd Dec 2015 14:27
LONDON (Alliance News) - EKF Diagnostics Holdings PLC on Tuesday said it has agreed to borrow GBP3.0 million through a convertible loan from Zwanziger Family Ventures LLC, with the money to be used to repay part of the company's existing debt with HSBC.
The loan demonstrates the backing of Chairman Ron Zwanziger, beyond the lender's current 7.98% stake in EKF Diagnostics.
"This is excellent news for company and shows significant support from the non-executive Chairman, already a major shareholder, as well as enabling us to complete our rationalisation," Chief Executive Julian Baines said.
The convertible loan has a term of two years, interest at a fixed rate of 5.0% above the London interbank offered rate to be paid every six months, and security by a second fixed charge over the assets of EKF ranking behind HSBC.
The convertible loan is immediately repayable on certain events of default including change of control and third party financing.
Conversion of the loan is at the option of the lender. It can be carried out at either 14.25 pence per share, resulting in the issue of about 21.1 million shares, or at a 15% discount to the company's next substantial fundraising.
Shares in EKF were up 12% at 13.26 pence on Tuesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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