Settlement of Synergy Loan Note

RNS Number : 1755P

Westminster Group PLC

30 September 2013

 



30 September 2013

Westminster Group Plc:

Final Settlement of Synergy Loan Note

Westminster Group Plc ('Westminster' or 'the Company'), the AIM listed supplier of advanced security and defence equipment, services and solutions worldwide, is pleased to announce that, further to the announcements made on 19 and 27 June 2013, the Company has agreed a final settlement of the 2009 convertible secured loan note agreement ("CLN") with the liquidators of Synergy Capital Ltd ("Synergy").

The Company has agreed with Synergy a discounted capital payment of £385,000 (originally £403,000) as full and final settlement of the CLN and for the associated release of debentures. This  has in part been achieved by a drawdown of £200,000 gross from its Equity Financing Facility ("EFF") facility with Darwin Strategic Limited at a price of  70p, being a 1.5% premium to the volume weighted average closing price over the last 10 trading days. This will result in the Company issuing 285,714 ordinary shares of 10p each under the terms of the EFF.

Commenting on the resolution, Peter Fowler, Chief Executive of Westminster Group, said:

"I am delighted that we have now settled this long outstanding issue on favourable terms. The final settlement represents a saving of approximately £47,000 to the Company on what otherwise would have been payable up to the maturity date of 29 June 2014, and which, together with the £300,000 reduction negotiated and announced on 19 June 2013 and the £300,000 payment in July 2013, means the Company has managed to clear this CLN with minimal further dilution.

"The final settlement of the Synergy CLN combined with the conversion of the unsecured loan note announced on 10 September 2013, means that since the start of July 2013 the Company has reduced its debt by £2.28m and this has added to our balance sheet strength.

"The use of our EFF facility, which was at a premium to the current price, to help with this settlement also demonstrates the value and flexibility of this facility".

Application has been made to the London Stock Exchange for the 285,714 ordinary shares ('New Shares') to be admitted to trading on AIM. It is expected that the admission will become effective and that trading in the New Shares will commence on or around 4 October 2013 ("Admission").

Total Voting Rights

Following Admission of the 285,714 New Shares, the Company's enlarged issued share capital will comprise of 44,440,219 ordinary shares with voting rights. This figure of 44,440,219 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

For further information please contact:

Westminster Group plc	Tel: [phone]
Peter Fowler (Chief Executive)
Ian Selby (Chief Financial Officer)
S. P. Angel Corporate Finance LLP (NOMAD and Broker)	Tel: [phone]
Stuart Gledhill/Katy Birkin
Winningtons Financial (Financial PR)	Tel: [phone]
Tom Cooper/Paul Vann	0797 122 1972

Notes:

Westminster Group plc is a leader in the supply of system solutions and products to the security, defence and safety markets worldwide.

Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, detection, tracking and interception technologies and the provision of long term managed services contracts such as the management and running of complete security services and solutions in airports, ports and other such facilities together with the provision of manned services, consultancy and training services. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue chip commercial organisations.  For further information please visit www.wi-ltd.com 

 

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