Additional Resources

RNS Number : 8584H

Challenger Acquisitions Limited

13 June 2017

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

For immediate release                                                                                                     13 June 2017

Challenger Acquisitions Limited

("Challenger" or the "Company")

Additional Resources

Challenger Acquisitions Limited (LSE: CHAL) announces that it has received £100,000 (£95,000 net of fees) from the setup of a new £1,000,000 unsecured convertible note facility due 8 June 2019 ("Note Facility").

This Note Facility will be used for general working capital purposes and to potentially support an acquisition or development of a project to complement the Company's US$3 million equity interest in the US$590 million New York Wheel Project which is currently under construction. 

Challenger has also engaged a London based consulting firm, on a success fee basis, to assist in identifying and securing project level funding sources for potential Giant Observation Wheel projects and for other new potential projects in the leisure and entertainment sectors which the Company is currently evaluating.

Mark Gustafson, the Company's Chief Executive Officer, said: "We are very pleased to have a funding facility in place and to be working on securing additional funding sources for potential new projects for Challenger.  Further updates will be provided in due course."

Principal terms of the Note Facility

·    The aggregate principal amount is up to £1 million with a 24 month term.

·    The convertible note is unlisted, unsecured, transferable and must be redeemed by the Company on 8 June 2019, in cash unless it has been fully converted by then into ordinary shares of the Company ("Ordinary Shares").

·    There are no conversions for the first 120 days.

·   The maximum amount that can be converted in any 30 day period is 20% of the principle amount.

·   Subject to the conversion limitations noted above, the noteholder may exercise a conversion at the lowest volume weighted average price over the 10 days prior to the conversion ("Conversion Price").

·    Interest is accrued at 8% per annum and payable upon conversion, at the Company's option in:

o cash; or

o by issuing Ordinary Shares in respect of such accrued interest conversion amount at the Conversion Price.

·   At any time the Company can redeem in cash all or any part of the outstanding convertible note from the holder at a 25% premium to the principal amount of such notes.

·    The convertible note may be redeemed by the noteholder following certain noteholder redemption events, which include: payment default; material breach by the Company not cured within fifteen trading days; the Company or any of its subsidiaries suffer an insolvency event.

·   The convertible note and related documentation are governed under the laws of England.

This announcement contains inside information.

**ENDS**

For more information visit www.challengeracquisitions.com or enquire to:

Challenger Acquisitions Limited
Mark Gustafson	[phone]
St Brides Partners Ltd (PR)
Lottie Brocklehurst, Charlotte Page	[phone]

 

END

 

 

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