Conversion of convertible loan notes
FOR IMMEDIATE RELEASE
27 May 2016
Independent Resources plc
("IRG" or the "Company")
Conversion of convertible loan notes
IRG announces that today it exercised its option to repay through the issue of new ordinary shares of 0.01p each in the Company ("Shares"), the outstanding principal of £200,000 and accrued interest of £17,143 due on its issue of convertible loan notes ("CUL's"), announced to the market on 17 May 2016.
Pursuant to the terms of the CUL's, 452,380,952 Shares ("Repayment Shares") have been issued at a price of 0.048p per Share ("Conversion Price"), being the average of the three lowest closing mid-market prices of the Company's Shares between the issue date of the CUL's and the Company notifying the holders of the CUL's of IRG's intention to repay the CUL's in Shares, less a price discount of 10 per cent.
The Directors consider that it is in the best interests of the Company and its shareholders to repay the CULs with immediate effect through the issue of new equity thereby avoiding further material interest payments accruing and retaining cash within the Company.
Further, as announced to the market on 23 May 2016, a trade creditor has agreed to accept payment of indebtedness of £36,000 through the issue of Shares at the Conversion Price. Pursuant to this agreement the Company will issue 75,000,000 Shares to this creditor ("Creditor Shares").
Following the issue of the Repayment Shares and Creditor Shares referred to above and the 69,428,571 Shares expected to be admitted to trading on 1 June 2016 pursuant to the arrangements announced on 25 May 2016, there will be 1,262,504,294 ordinary shares of 0.01p each in the Company in issue. The figure of 1,262,504,294 Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the Company under the Disclosure and Transparency Rules.
The Repayment Shares and the Creditor Shares will rank pari passu with the Company's existing ordinary shares of 0.01p each. Application will be made for the Repayment Shares and the Creditor Shares to be admitted to trading on AIM ("Admission").
It is expected that Admission will become effective and dealings in the Repayment Shares and the Creditor Shares will commence at 8.00 a.m. on 3 June 2016.
CEO comment
Commenting on the repayment of the CUL's and their conversion into equity Greg Coleman, CEO of Independent Resources said:
"The Company remains committed to conserving its cash and improving its liquidity and both these objectives are served by our decision to repay the outstanding principal and accrued interest on the Company's convertible loan notes through the issue of equity."
For more information, please visit www.ir-plc.com or contact:
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Greg Coleman |
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Independent Resources plc |
020 3367 1134 |
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Adam James |
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Panmure Gordon (UK) Limited |
020 7886 2500 |
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(Nominated Adviser & Joint Broker) |
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Oliver Stansfield |
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Brandon Hill Capital |
020 3463 5000 |
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Jonathan Evans |
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(Joint Broker) |
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Simon Hudson |
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Tavistock Communications |
020 7920 3150 |
This information is provided by RNS
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