Conversion of Loan Notes and Issue of Equity
02 July 2009 - 4:00PM
UK Regulatory
TIDMBRG
RNS Number : 9649U
Braemar Group PLC
02 July 2009
2 July 2009
BRAEMAR GROUP PLC ("Braemar" or the "Company")
Conversion of Loan Notes and Issue of Equity
Braemar Group plc, the AIM quoted innovative real estate fund and management
group, would like to announce that it has agreed with Marc Duschenes, Chief
Executive, to convert GBP200,000 of the convertible loan notes issued to him as
part of the consideration of the acquisition of The Braemar Group Limited into
equity at a price of 2.75 pence per share. This will result in 7,272,727 new
ordinary shares of 1 pence each ("Ordinary Shares") in the Company being issued
to Marc Duschenes.
This conversion will also have the effect of reducing the Company's debt by
GBP200,000; enhancing net assets by the same amount and saving interest costs of
approximately GBP20,000 over the next 18 months.
Under the terms of the convertible loan note instrument, as set out in the
admission document dated 10 November 2005 the conversation rate was set at a
price of 3 pence per share with a life span of five years. After assessing
the benefits of the partial early conversion on the Company's financial
position, and in light of the current share price, the Directors have concluded
that the variation to the original conversion rate is acceptable and in the best
interests of the Company.
The beneficial interest of Mr. Duschenes following this transaction is now
41,235,393 Ordinary Shares representing 24.00% of the total issued share capital
of the Company.
With the exception of Marc Duschenes, the directors of Braemar have consulted
with Zeus Capital Limited and concluded that the terms of the transaction are
fair and reasonable insofar as its shareholders are concerned.
Braemar Group plc also announces that pursuant to an agreement with a third
party, who has been promoting the Company's funds, that a further 1,066,750 new
Ordinary Shares have been issued.
Application has been made for 8,339,477 Ordinary Shares to be admitted to AIM
and Admission is expected to occur on or around 8 July 2009. Following
admission, the enlarged issued share capital of the Company will be 172,126,380
Ordinary Shares.
For further information please contact:Marc Duschenes, CEO, Braemar Group plc
Julie Serrage, Investor Relations, Braemar Group plc
Tel: 0161 929
4969
Alex Clarkson/Nick Cowles, Zeus Capital Limited
Tel: 0161 831 1512
Stuart Forshaw, Corporate Broking, WH Ireland Limited
Tel: 0161 832 2174
Notes to Editor:
Established in 2001 and quoted on AIM in December 2005, Braemar Group plc,
through its two core divisions Braemar Securities Limited and Braemar Estates
(Residential) Limited, creates and manages a range of real estate investment
funds.
Braemar Securities
Braemar Securities specialises in fund raising for public and private companies.
It sponsors and operates a range of property investment funds for the Group and
for third parties. Braemar specialises in designing, promoting and managing
innovative structured financial products and promotes its funds to high net
worth individuals, via IFAs and other regulated entities.
Braemar Estates
Braemar Estates is responsible for the property management for Group funds and
also has a diverse portfolio of over 2,000 managed residential properties
throughout the UK. Braemar has expanded this highly successful service to
private developers who require effective apartment-block property management.
Website:
www.braemar-group.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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