30th Jun 2015 09:24
LONDON (Alliance News) - ServicePower Technologies PLC said Tuesday it has agreed an unsecured short-term loan facility of GBP750,000 with Herald Investment Trust, and said that Herald and Bury Fitzwilliam Lay & Partners LLP have converted and redeemed their remaining convertible loan notes.
ServicePower recently approached both Herald and Bury Fitzwilliam Lay & Partners to negotiate the early conversion of the loan notes. As a result Herald has converted its notes into 22 million new shares at a conversion price of 3.875 pence each, leaving it with a 22.9% interest in the company.
BFLAP redeemed 50% of its notes into cash, half to be paid in July and half in September, and the remainder into 5.5 million shares at the same conversion price, leaving it with a 4.64% interest in the company.
The GBP750,000 loan facility is repayable in full December 15, and will be used for on-going working capital and to continue investment in research and development.
"I am delighted that we have been able to negotiate the early conversion and redemption of the convertible loan notes. In addition, we are pleased to have entered into a loan facility with Herald, which will reduce the company's cost of capital and will help to further strengthen the ServicePower balance sheet," said Chief Executive Officer Marne Martin in a statement
Shares in ServicePower were down 1.2% at 4.07 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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