REG - Manx Financial Group - Extension of Unsecured Convertible Loan Notes

Manx FinancialAnnouncement

22/07/2022 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:20220722:nRSV3693Ta&default-theme=true

RNS Number : 3693T  Manx Financial Group PLC  22 July 2022

FOR IMMEDIATE RELEASE
 
            22 July 2022

 

 

Manx Financial Group PLC (the "Group")

 

Extension of Unsecured Convertible Loan Notes

 

Jim Mellon and Burnbrae Limited ("Burnbrae") have agreed to extend outstanding
unsecured convertible loans of £1.7 million, due to expire on 31 July 2022,
for a further five years to 31 July 2027. A loan of £1.2 million is from
Burnbrae and the remaining loan of £0.5 million is from Jim Mellon himself.
The new annual interest rate will be 7.5% (previously 5.0%) and the new
conversion price will be 8.0 pence per share (previously 7.5 pence). All other
terms are unchanged, including the ability for the Company to repay the loans
at any time during the period.

 

The extension of the loans is a Related Party Transaction under the AIM rules
as Jim Mellon is a director of the Group and indirectly wholly owns and is
Chairman of Burnbrae and Denham Eke, also a director of the Group, is Managing
Director. As a result, Jim Mellon, Denham Eke and Greg Bailey (who is deemed
in concert with Jim Mellon) recused themselves from voting in the transaction.
The Group's Independent Directors (being the Board with the exception of Jim
Mellon, Denham Eke and Greg Bailey) consider, after consulting the Group's
Nominated Adviser, that the terms of the loans are fair and reasonable
insofar as the Group's shareholders are concerned. In reaching this conclusion
the Independent Directors, having considered the most suitable method of
preserving the regulatory capital funding required for the continued expansion
of the Group's principal subsidiary, Conister Bank Limited, reviewed the costs
and practicality of alternative third-party finance, as well as the
possibility of a rights issue, and concluded that the terms for the extension
were both fair and reasonable for all shareholders.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU No. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS
SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDE INFORMATION.

 

For further information, please contact:

 

 Manx Financial Group PLC  Beaumont Cornish Limited      Greentarget Limited

 Douglas Grant, CEO        Roland Cornish/James Biddle   Dafina Grapci-Penney

 Tel +44 (0)1624 694694    Tel +44 (0) 20 7628 3396      Tel +44 (0) 203 963 1887

 

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  MSCVFLFLLDLBBBZ