REG - DDD Group PLC - Issue of Convertible Unsecured Loan Notes <Origin Href="QuoteRef">AZN.L</Origin> <Origin Href="QuoteRef">DDDL.L</Origin>

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RNS Number : 8348N
DDD Group PLC
31 July 2014 
 
31 July 2014 
 
DDD Group plc 
 
Issue of Convertible Unsecured Loan Notes 
 
DDD Group plc (AIM: DDD; OTCQX: DDDGY; "DDD" or the "Company") announces that
it is currently raising up to £2,100,000 of Convertible Unsecured Loan Notes
("Notes") pursuant to the existing authorities granted to the board of
directors and that on 30 July 2014 it received firm commitments from related
parties for the issue of 25.5% of the nominal value or £535,000 of the Notes. 
 
The issue of the Notes will be conducted under the authority granted to the
board of directors pursuant to Section 120 the Company's Articles of
Association. The right of conversion of the Notes into ordinary shares falls
within the current partial dis-application of pre-emption rights approved by
shareholders at the June 10th 2014 Annual Shareholders Meeting. 
 
The net proceeds from the Notes will allow the Company to continue to develop
its new technologies and business development activities for the 2D image
processing market while continuing ongoing support of the 3D market. 
 
The following is a summary of the main provisions of the Notes. The Notes have
an annual interest rate of 7%. The Notes can be converted by the holders into
ordinary shares of 1 pence each in the capital of the Company ("Shares") at a
conversion price of 10 pence nominal amount of Notes per Share. The Company
has the option to redeem the Notes at any time at a 5% premium to their
nominal value plus accrued interest. Any Notes outstanding on 30 January 2016
will at the option of the Company be repaid in cash or settled by the issue of
Shares at the conversion price; in both cases accrued interest will be payable
in cash. 
 
Four of the Directors of DDD or their affiliates have agreed to subscribe for
Notes. The nominal amount of the Notes that they have agreed to acquire are as
follows:  Christopher Yewdall £20,000; Nicholas Brigstocke £25,000; Hans Snook
affiliate £50,000; and Dr. Sanji Arisawa £20,000. 
 
Additionally, Arisawa Manufacturing Co., Ltd. ("Arisawa"), currently a holder
of 20.8% of the existing issued ordinary share capital of the Company has
agreed to acquire £420,000 of the Notes (the "Transaction"). 
 
The Transaction is a related party transaction for the purpose of AIM rule 13,
Arisawa and certain Directors being related parties within the meaning of the
AIM rules. The Directors of the Company who are independent to this
Transaction, Paul Kristensen and Victoria Stull, consider, having consulted
with the Company's nominated adviser, that the terms of the Transaction are
fair and reasonable insofar as the shareholders are concerned. 
 
Final details regarding percentage interests of significant shareholders
should the notes be converted to share capital in the future will be provided
in a subsequent announcement once the remainder of the debt financing has been
completed. 
 
Commenting on the issue of the Notes, Chris Yewdall, CEO of DDD said: 
 
"This additional funding will allow the continued expansion of our
technologies into markets beyond 3D. DDD's new sensor software technology is
applicable to the sizeable 2D consumer electronic device markets of PCs,
tablets and smartphones. We anticipate having the first PC versions of these
new technologies available for our prospective customers to evaluate early in
the fourth quarter." 
 
The Company anticipates releasing the 2014 Interim financial results on 30
September 2014. 
 
Enquiries 
 
 DDD Group Chris Yewdall, President & CEOVictoria Stull, CFO     +1 310 566 3340      
 Peel Hunt LLP (UK Nomad/Broker)Richard Kauffer / Daniel Harris  +44 (0)207 418 8900  
                                                                                      
 Berns & Berns (US PAL)Michael Berns, esq.                       +1 212 332 3320      
 
 
About DDD 
 
DDD transforms the visual experience. Its advanced imaging and TriDef®
solutions are licensed by leading brands including Samsung, LG and Lenovo for
use in TVs, tablets and PCs. Over 44 million 3D products have been shipped by
DDD's licensees worldwide. DDD's Yabazam® streaming service delivers 3D to
smart TVs and tablets everywhere. DDD's shares are quoted on the London Stock
Exchange's AIM Market (AIM: DDD) and the OTCQX (DDDGY). For more information
please visit www.DDD.com. 
 
This information is provided by RNS
The company news service from the London Stock Exchange