11th Dec 2015 09:23
LONDON (Alliance News) - Vending machines company Snacktime PLC said it has reached agreements with investors, loan noteholders and creditors to raise a total of GBP3.0 million through a share issue to shore up its finances.
The company said it will issue a total of 40.7 million shares to raise the financing, of which GBP1.1 million will be raised thorough a subscription agreement. The rest will be raised by the compkany converting loan notes and other credit balances in order to boost its balance sheet, while it has also reached an agreement with The Cooperative Bank to restructure its repayment schedule on its secured loan facility during 2016.
The subscription agreement will involve the issue of a total of GBP20.0 million shares at 5.0 pence per share. Shares in the company are currently suspended and last traded at 8.00p.
The group will then raise the rest of the money by converting its 2008 and 2013 convertible loan notes, leaving some of the 2013 notes in issue.
The company said its trading has been hit by its restricted access to working capital, which the measures announced on Friday are designed to address, but said the restructuring programme it undertook is starting to feed through.
Snacktime expects to publish its results for the year to March 31, 2015 after the restructuring and financing completes and will issue its interim results for the half to the end of September 2015 in due course thereafter.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
SNAK.L