2nd Jun 2014 08:36
LONDON (Alliance News) - Sopheon PLC Monday said it has reached a deal that extends the maturity of its convertible loan stock by two years.
In 2009 and 2011, Sopheon issued GBP2.0 million of convertible unsecured loan stock to a group of investors, including board members and its senior management team. It had been due to mature on January 31, 2015, but the owners of the instruments have agreed to extend that to January 31, 2017.
Like more traditional bonds, convertible loan stocks carry a rate of interest but also give the holder right to exchange them into shares.
The conversion price has now been set at 76.5 pence, which was the closing mid market price of the shares on AIM on Friday.
Due to the extension, the loan stock will continue to be classified as a long-term liability on Sopheon's balance sheet.
Sopheon shares were Monday quoted at 80.0 pence, up 4.6%.
By Samuel Agini; [email protected]; @samuelagini
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