24th Nov 2015 11:41
LONDON (Alliance News) - Paragon Diamonds PLC on Tuesday said its broker and nominated adviser Northland Capital Partners Ltd has resigned with immediate effect.
Shares in Paragon remained suspended as it worked to clarify its financial position.
On Friday, Paragon said it had converted a loan facility due to have been paid this week into convertible loan notes to give itself some breathing room, though its financial position remains strained.
The diamond miner said it has reclassified the GBP500,000 loan due to have been repaid by Wednesday last week as a convertible loan note of GBP638,750, with the maturity extended to May 30.
During the period from now to the maturity of the note, its lender will be able to convert the balance of the note into Paragon Diamonds shares at 5.22 pence per share or 90% of the value of three daily volume-weighed average price calculations, whichever is the lower. The stock was last quoted at 3.98p.
Paragon said, however, that notwithstanding the extension to the maturity on the loan note compared to the debt facility, it still have limited working capital and there remains "material uncertainty" about its financial position.
By Sam Unsted; [email protected]; @SamUAtAlliance
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