Eight Capital Ptnrs. - Issue of Listed Bonds & Balance Sheet Update
23/05/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220523:nRSW3985Ma&default-theme=true
RNS Number : 3985M Eight Capital Partners PLC 23 May 2022
23 May 2022
Eight Capital Partners plc
("ECP", "Eight Capital" or "the Company")
Balance Sheet Restructuring Update and Issue of Listed Bonds
Eight Capital Partners plc (AQSE: ECP), the financial services operating
company that aims to grow revenue through businesses engaged in "Fintech"
operations, from the digitisation of banking services, through to
blockchain-backed disruptive finance companies provides an update to its
balance sheet restructuring previously announced on 27 September 2021.
The Company announces that, following the sale of €5 million of vendor loans
held by IWEP Limited ("IWEP"), a company controlled by ECP's Chairman, Mr
Dominic White, to an independent third party, the Company has agreed to
satisfy the vendor loan acquired by the third party through the issue of €5
million of the Company's EUR 7% Fixed Rate Bonds ("the 7% Bonds") (the "Debt
Conversion"). The 7% Bonds are traded on the Vienna Exchange and are due to
mature on 26 July 2022. This further tranche of 7% Bonds were admitted to
trading on the Vienna MTF Stock Exchange on 20 May 2022, issued at par, and
pay interest of 7% per annum semi-annually in arrears.
As a result of the Debt Conversion, there has been no change to the aggregate
amount of ECP's outstanding debt. The revised amounts outstanding of the 7%
Bonds and the Vendor Loan are now €8.99 million and €20 million
respectively.
As announced on 27 September 2021, the Board's objective continues to be to
grow the market capitalisation of the Company towards and beyond £50 million.
The board of ECP recognises that in order to build value in the Company, a
proactive reorganisation of ECP's balance sheet is appropriate, including,
inter alia, the conversion of some or all of ECP's existing debt. The Debt
Conversion forms the first step of the balance sheet reorganisation process
that is envisaged over the coming months.
IWEP, the Company's largest shareholder and debt holder, has stated its
intention, conditional on appropriate shareholder approvals and regulatory
clearance from the Takeover Panel in respect of a Rule 9 whitewash resolution,
to convert up to €20 million of its remaining vendor loan into equity in ECP
(the "Conditional Equity Conversion"). The Company therefore intends, as the
second step in the balance sheet reorganisation, shortly after the release of
its results to 31 December 2021, to convene a general meeting of shareholders
to approve resolutions to allow it to effect the Conditional Equity
Conversion. Subject to demand, additional third party debt to equity
conversions on the same terms may also then be effected at the same time as
the Conditional Equity Conversion.
The Company has previously stated that it may seek to undertake an equity
fundraise to existing and new investors. Following the Conditional Equity
Conversion, the Company intends to explore this opportunity as the third step
of its balance sheet restructuring.
ECP Chairman, Dominic White, commented:
"The Company has been successful in creating and utilising debt instruments to
raise finance. These instruments have been valuable in helping to build
gross asset value. Thanks to the positive support of a number of our debt
investors, our aim is that the initial steps outlined here, will enable the
Company to convert a significant amount of its debt into equity, expand the
equity value of the business and therefore make ECP's shares more attractive
to investors.
"As ECP moves forward through its balance sheet strengthening process, it is
also carefully analysing fintech acquisition opportunities in digital banking,
trade receivables and inventory finance, and wealth management. As Chairman
and as a substantial investor, I believe that this will lead to accelerated
growth, increased opportunities and enhanced shareholder returns."
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.
Eight Capital Partners plc +44 20 3808 0029
Dominic White info@eight.capital
Cairn Financial Advisers LLP +44 20 7213 0880
AQSE Corporate Adviser
Jo Turner / James Lewis
Walbrook PR Limited +44 20 7933 8780
Paul Vann/Nick Rome Paul.vann@walbrookpr.com
About Eight Capital Partners:
Eight Capital Partners plc is an international financial services operating
company focused on owning and operating businesses engaged in "Fintech"
operations, from the digitisation of banking services, through to
blockchain-backed decentralised finance companies.
ECP provides equity, debt, and equity-related investment capital to companies
seeking capital for growth and development, consolidation or acquisition, or
pre-IPO financing. The Company seeks to generate an attractive rate of return
for shareholders, predominantly through capital appreciation, by maximising
the revenues, profits and value of its operating subsidiaries, and taking
advantage of the increasing number of acquisition opportunities within the
continuously developing global technology, and fintech sectors.
www.eight.capital (http://www.eight.capital)
Eight Capital Partners operates two subsidiary businesses:
Epsion Capital:
Epsion Capital is an independent corporate advisory firm based in London with
an extensive experience in UK and European capital markets. The company is
specialised in ECM, DCM, structured investment facilities, and M&A across
multiple markets, sectors and geographies. It prides itself on a commercial
approach that enables its clients to achieve their growth ambitions.
www.epsioncapital.com (http://www.epsioncapital.com/)
Innovative Finance:
Innovative Finance is a corporate finance advisory business that sources and
develops mergers and acquisitions and financing solutions across multiple
sectors, primarily in Europe, with access to international transactions. It is
currently working on transactions in North America and Europe which are linked
to technological developments in the financial services industry, e-commerce
and cannabis. www.innovfinance.com (http://www.innovfinance.com)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END NEXFIFLEETIVFIF