REG - Crossword Cybersec - Issue of Convertible Loan Notes

Crossword CybersecurityAnnouncement

19/04/2023 12:15

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RNS Number : 7889W  Crossword Cybersecurity PLC  19 April 2023

Crossword Cybersecurity Plc

 

Issue of Convertible Loan Notes

 

19 April 2023 - London, UK - Crossword Cybersecurity Plc
(http://www.crosswordcybersecurity.com/) (AIM:CCS, "Crossword", the "Company"
or the "Group"), the technology commercialisation company focused on cyber
security and risk, is pleased to confirm the completion of £375,000
additional convertible loan notes.

As announced earlier today, on 13 July 2022, the Company announced that Tom
Ilube, CEO of Crossword, intended to extend his £250,000 loan notes on the
same terms as other loan note holders; these loan notes expired in December
2022.  Tom Ilube had been unable to extend his convertible loan notes due to
being in possession of inside information relating to a potentially
transformational acquisition, which terminated earlier this year because the
vendor made other choices for their business and was unable to do so
subsequently due to the Company being in a closed period.  Following
announcement of the Company's results for 2022 earlier today, Tom Ilube is now
in a position to subscribe for loan notes of £250,000. These are on the same
terms as other loan notes issued or extended in 2022, except that the
conversion price is not subject to a 10 per cent. discount on the share price
immediately prior to the date of issue. Accordingly, the conversion price of
the £375,000 additional convertible loan notes is 8.25p, being the share
price immediately prior to the date of issue.  The loans have an expiry date
of 19 April 2026.

 

 

An additional £125,000 of loan notes have been issued on the same terms,
including £100,000 to Dr. Robert Coles, Non-Executive Director of Crossword
Cybersecurity Plc. The value of convertible loan notes is now £1,875,000,
with expiry dates between June 2025 and April 2026.  The proceeds of the new
loans will be used to provide additional working capital and to help fund the
Group's growth plans including continued sales of products and further product
development.

Mr Ilube's and Dr Coles's loans constitute related party transactions under
Rule 13 of the AIM Rules for Companies. The Independent Directors, being the
Directors other than Tom Ilube and Robert Coles consider, having consulted
with the Company's nominated adviser, that the terms of Mr Ilube's loan and Dr
Coles's loan are fair and reasonable insofar as the Company's Shareholders are
concerned.

Tom Ilube, CEO of Crossword Cybersecurity plc, commented:

"On the back of strong results in 2022 reported this morning, including
revenue increase of 68% and 81% growth in ARR, I am pleased to be in a
position to reinstate my loan note with Crossword and to have the support of
others including Dr. Robert Coles.  The proceeds of these loans will fund
Crossword as we target £6m revenue in 2023 and establish our path to
profitability."

- Ends -

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain

Contacts

 

Crossword Cybersecurity plc - Tel: +44 (0) 333 090 2587

Email: info@crosswordcybersecurity.com

Tom Ilube, Chief Executive Officer

Mary Dowd, Chief Financial Officer

 

Grant Thornton (Nominated Adviser) - Tel: +44 (0) 20 7383 5100

Colin Aaronson / Jamie Barklem / Ciara Donnelly

 

Hybridan LLP (Broker) - Tel: +44 (0)203 764 2341

Claire Louise Noyce

 

For media enquiries contact:

 

Financial PR:

David Hothersall, Kinlan Communications

davidh@kinlan.net (mailto:davidh@kinlan.net) - Tel: +44 (0) 207 638 3435

 

General:

Duncan Gurney, GingerPR

duncan@gingerpr.co.uk (mailto:duncan@gingerpr.co.uk) - Tel: +44 (0)1932 485
300

 

 

About Crossword Cybersecurity plc

 

Crossword offers a range of cyber security solutions to help companies
understand and reduce cyber security risk. We do this through a combination of
people and technology, in the form of SaaS and software products, consulting,
and managed services. Crossword's areas of emphasis are cyber security
strategy and risk, supply chain cyber, threat detection and response, and
digital identity and the aim is to build up a portfolio of cyber security
products and services with recurring revenue models in these four areas. We
work closely with UK universities and our products and services are often
powered by academic research-driven insights. In the area of cybersecurity
strategy and risk our consulting services include cyber maturity assessments,
industry certifications, and virtual chief information security officer
(vCISO) managed services.

 

Crossword's end-to-end supply chain cyber standard operating model (SCC SOM)
is supported by our best-selling SaaS platform, Rizikon Assurance, along with
cost-effective cyber audits, security testing services and complete managed
services for supply chain cyber risk management. Threat detection and response
services include our Nightingale AI-based network monitoring, our Trillion and
Arc breached credentials tracking platforms, and incident response.
Crossword's work in digital identity is based on the World Wide Web Consortium
W3C verifiable credentials standard and our current solution, Identiproof,
enables secure digital verification of individuals to prevent fraud.

 

Crossword serves medium and large clients including FTSE 100, FTSE 250 and
S&P listed companies in various sectors, such as defence, insurance,
investment and retail banks, private equity, education, technology and
manufacturing and has offices in the UK, Poland and Oman. Crossword is traded
on the AIM market of the London Stock Exchange.

 

Visit Crossword at https://www.crosswordcybersecurity.com/
(https://www.crosswordcybersecurity.com/)

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