REG - Minoan Group PLC - Convertible loans and Company update

MinoanAnnouncement

02/10/2024 07:00

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RNS Number : 5253G  Minoan Group PLC  02 October 2024

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2 October 2024

Minoan Group Plc

("Minoan" or the "Company")

Convertible loans and Company update

 

The Company announces that agreement has been reached to exchange certain
outstanding loans to the Company with a total value of £1,149,494 (the
"Loans") into new convertible loans (the "New Convertible Loans").  All but
one of the New Convertible Loans are interest free and will be redeemable or
converted together with a fee of 10% at either the Company or holder's option.
The Company will be allowed to exercise the option to convert the New
Convertible Loans only if the share price exceeds 0.9p for a period of seven
days. One of the New Convertible Loans with a value of £190,000 and an
interest rate of 10% per annum with no fee, is convertible at the holder's
option only.

 

All of these New Convertible Loans have a redemption date which has been
extended to 31 December 2025 and will be convertible by the issue of ordinary
shares at 1p per share in Minoan, a premium of approximately 90% to
yesterday's closing mid-price of 0.53p. If all of these New Convertible Loans
were to be converted, liabilities would be reduced by £1,149,494.

 

The arrangement concerning the settlement of certain creditors, as announced
on 18 October 2023 is nearing completion. Assuming conversion of the loans
announced today, together, these settlements, which have taken a considerable
time to negotiate and agree, will significantly de-lever Minoan's balance
sheet, an essential pre-cursor as the Company prepares for the next steps
towards starting development at Cavo Sidero.

 

In addition, the Board is expecting to be able to update shareholders shortly
on significant commercial progress and on our detailed negotiations, conducted
through the Greek Ministry of National Economy and Finance in relation to the
updated contract with the Public Welfare Ecclesiastical Foundation Panagia
Akrotiriani.

 

Related Party Transaction

Nicholas Day and Peter Raby are directors of Minoan's 100% owned subsidiary
Loyalward Limited and are participating in the above transaction as follows:

 

 Name of related party  Loan outstanding
 Nicholas Day             £206,468
 Peter Raby               £218,372

 

These directors are beneficiaries, either individually or through connected
parties, of the conversion of the Loans into the interest free New Convertible
Loans. The agreements to exchange the Loans into the New Convertible Loans
constitute related party transactions under Rule 13 of the AIM Rules for
Companies. The Directors of Minoan consider, having consulted with the
Company's nominated adviser, Zeus Capital Limited, that the terms of the
agreements are fair and reasonable insofar as its shareholders are concerned.

For further information visit www.minoangroup.com or contact:

Minoan Group Plc
              mail@minoangroup.com

 

Zeus Capital Limited
               020 3829 5000

Antonio Bossi / Andrew Andrade
 

 

Peterhouse Capital Limited
 
020 7469 0930

Duncan Vasey
 
 

 

 

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