Creation of ?500,000 Loan Notes

RNS Number : 6726P

Pinnacle Telecom Group PLC

06 October 2011

 



6 October 2011

Pinnacle Telecom Group plc ("the Company")

Creation of £500,000 Unsecured Convertible Loan Notes

Pinnacle Telecom Group plc, the provider of cloud based technology solutions, is pleased to announce the creation of £500,000 unsecured convertible loan notes ("Loan Notes") in units of £2,000, of which Loan Notes of a nominal value of £18,000 were issued today (the "Commencement Date") in part, for the acquisition of Online Computer Developments Ltd.

The Loan Notes, which are not transferable, may be redeemed (in whole or in part) by the Company, at its sole discretion, at any time. The Loan Notes will become repayable on demand in the event of specified default by the Company. 
 
The Loan Notes are convertible into Ordinary Shares by the Company at any time following the second anniversary of the Commencement Date, or by the holders of the Loan Notes at any time following the period of thirty days following the second anniversary of the Commencement Date.

The conversion price in each case will be a discount of 15% to the mid-market price per Ordinary Share as at close of business on the date five days after service of the relative conversion notice, subject to a minimum of nominal value. 

The Ordinary Shares to be so issued will rank pari passu in all respects with the existing Ordinary Shares in issue. 
 
Interest will accrue on the Loan Notes, at 10 per cent per annum, from the Commencement Date to the earlier of the date of redemption and the date of conversion.  Interest will accrue from day to day on the aggregate principal amount of the Loan Notes outstanding from time to time and is payable monthly in arrears.  
 
Commenting today Alan J Bonner, Chief Executive of Pinnacle Telecom Group plc, said: "It is intended that the creation of £500,000 of unsecured convertible loan notes will be used in part for acquisitions and to fund the company's drive to build a business of scale." 
 

Enquiries:

Pinnacle Telecom Group plc
Alan J Bonner, Chief Executive	Tel: [phone]
Zeus Capital Limited
Ross Andrews/Paul Horrocks	Tel: [phone]
Rivington Street Corporate Finance Limited
Jon Levinson/Peter Greensmith	Tel: [phone]
All Company announcements can be found at:	www.pinnacletelecomgroup.co.uk

About Pinnacle

Pinnacle Telecom Group plc (AIM: PINN) is a value added, solutions based provider of integrated telecommunications services including IP solutions. It focuses on the SME market across the UK, where it provides a wide range of communications solutions including telecommunications calls, access and consultancy, IT support, mobile solutions - both voice and data and hosted broadband voice services.

Pinnacle is a fully licensed Public Telephone Operator, has its own telephone network and interconnects with BT, Virgin Media and THUS. It has its own hosted voice (VoIP) platforms and engineers and owns Scotland's oldest ISP (and a founder member of Nominet), operating from its data centres in Glasgow, London and Brighton.

Pinnacle's strategy is to be a SME focused, value added, solutions based provider of next generation, cloud-based IP solutions, driven by leveraging organic opportunities as well as through targeted acquisitions. Pinnacle is seeking to acquire and grow businesses to bring together the four main elements of; traditional telephony, hosted cloud-based services, IT support and data centres. A particular target area is data centres, where the combination of recurring revenue and a platform to expand its hosted cloud-based services, would create a compelling earnings-enhancing proposition. A strategic acquisition in this area would potentially be transformational and as data centres are worldwide, it is widening the search parameters.

 

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