3rd May 2005 11:07
FOR IMMEDIATE RELEASE 3 May 2005 PNC TELECOM PLC ("PNC" or "the Company") Issue of Loan Notes On 29 April 2005 the Company announced that PNC had received a letter demandingrent indemnities provided to directors of a former subsidiary of PNC, being KJCMobile Phones Limited, in respect of shop lease obligations. PNC understandsthat the total rent liability in respect of these shops is some ‚£428,750 and istaking legal advice in relation to this matter. Further to the receipt of thisdemand, in order to provide the Company with additional working capital, at aboard meeting held on 29th April 2005, the Company agreed to issue aconvertible loan note ("Convertible"), underwritten by the Directors beingMessrs Leo Knifton and Joseph Case, for ‚£500,000 convertible at a price of 0.1pper Ordinary Share at any time for seven years ending 28th April 2012. A totalof 500,000,000 Ordinary Shares are issuable under the convertible, representing74 per cent. of the enlarged issued share capital. These Directors receive noremuneration in order to preserve the Company's limited funds.Under the AIM Rule 13, the issue of the convertible loan note to the twoDirectors of the Company is a related party transaction. Beaumont CornishLimited, the company's Nominated Adviser, considers that the terms of the issueare fair and reasonable insofar as the Company's shareholders are concerned.The Company will make further announcements in due course when circumstancesrequire.For further information:PNC Telecom Plc Leo Knifton Tel: +44 (0) 207 251 3762 Beaumont Cornish Limited Nominated Advisers Tel: +44 (0) 207 628 3396 Roland Cornish / Noelle Greenaway ENDPNC TELECOM PLCRelated Shares:
Tricor