27th Mar 2009 13:38
Red24 Plc
("Red24" or "the Company")
EXTENSION OF LOAN NOTES
CANCELLATION OF DEFERRED SHARES
Red24 Plc today announces that £125,000 of the £375,000 outstanding 12% loan notes will be redeemed on 31 March 2009. Agreement has been reached with the remaining holders of the loan notes to extend the redemption date to 30 September 2010 ("the Loan Extension Agreement"). The coupon remains set at 12%.
In consideration for agreeing to extend the term of loan notes, the Company has agreed in principle to re-price the warrants that were issued pursuant to the original loan note agreements, from 10p per share issued upon exercise of 1 warrant to 5p per share. However, this re-pricing is subject to approval by shareholders, and the Company will seek such approval at the next Annual General Meeting of the Company.
As £190,000 of the Loan Extension Agreement relates to loan notes held by Sidebell Limited, a company controlled by Simon Richards, the transaction represents a related party transaction under the AIM Rules. The independent directors in respect of the Loan Extension Agreement have consulted with the Company's nominated adviser which has confirmed that, in its opinion, the terms of the transaction are fair and reasonable as far as the shareholders are concerned.
Additionally, pursuant to the shareholder approval granted in respect of resolution 7 of the Annual General Meeting of the Company held on 5 August 2008, and following approval on 25 March 2009 by the Scottish courts, the 324,710,836 deferred shares in the share capital of the Company have been cancelled.
For further information please contact:
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Red24 plc |
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Simon Richards, Chairman |
Tel: 020 3291 2424 |
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Threadneedle Communications |
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Josh Royston / Graham Herring |
Tel: 0207 653 9844 |
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HB Corporate |
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Luke Cairns/Rory Creedon |
Tel: 0207 510 8600 |
Notes to Editors:
red24 plc is a provider of security risk management services, offering preventative and reactive advice to help individuals avoid and manage personal risks to themselves and their families. The products are distributed through leading international financial service companies.
Related Shares:
REDT.L