REG - Electric Guitar PLC - Corporate update

Electric GuitarAnnouncement

26/02/2025 15:45

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RNS Number : 5864Y  Electric Guitar PLC  26 February 2025

26 February 2025

 

Electric Guitar PLC

("Electric Guitar" or the "Company")

 

Corporate update

 

On 24 December 2024, Electric Guitar announced that the Company was now
classified as a cash shell pursuant to Rule 15 of the AIM Rules for Companies
(the "AIM Rules") and would therefore be required to complete an acquisition
or acquisitions that would constitute a reverse takeover pursuant to Rule 14
of the AIM Rules or seek re-admission to AIM as an investing company.

 

Since then, the Board of Electric Guitar has been in discussions to
restructure and refinance the Company (the "Proposed Refinancing") and hopes
to complete matters and provide further details shortly.  In the meantime, in
order to fund initial costs of this process and other Company expenses in the
short term, the Company has received £45,000 from Sanderson Capital Partners
Limited ("Sanderson"), a substantial shareholder of the Company, and £10,000
from Grahame Cook, a Non-Executive Director of the Company.  It is intended
that these funds will be applied to an unsecured, interest free, senior
convertible loan note ("CLN") to be entered into as part of a wider
fundraising and restructuring of the Company in order to pursue a new
acquisition strategy.

 

In recognition of the support provided by these investors at this time, it is
intended that as part of the CLN Sanderson and Grahame Cook will receive
warrants over new ordinary shares in the Company in the ratio of 1 warrant for
every 2 new ordinary shares received for the conversion of the CLN, such
conversion to take place immediately upon completion of the Proposed
Refinancing.  In addition, Sanderson and Grahame Cook will have first refusal
if there is any equity or debt raised by the Company within 18 months from 7
February 2025.

 

The investments described above by Sanderson and Grahame Cook constitute
related party transactions pursuant to Rule 13 of the AIM Rules. Accordingly,
the independent Directors (being the directors of the Company excluding
Grahame Cook) consider, having consulted with the Company's nominated adviser,
Allenby Capital Limited, that the terms of the investments are fair and
reasonable insofar as Electric Guitar's shareholders are concerned.

 

Contacts:

 

 Electric Guitar PLC                                     info@electricguitarplc.com

 Richard Horwood, COO

 Allenby Capital (Nominated Adviser and Broker)          020 3328 5656

 Jeremy Porter / Piers Shimwell / Dan Dearden-Williams

 

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